Imam Ilyas Sidyot

Questions and Answers

Question: 005

Assalam Alikoum Imam Ilyas, Below please find the communications I had with Toyota regarding their 0% finance car purchase.

I would appreciate your help to get the Sharia opinion on such deals and if there is any riba associated with them Jazak Allah Khair

the terms and conditions of the contract...
Good Morning Dr. Meliti, I hope your day is going well. As promised, you are my first email of the day and I have some good news regarding the September programs on the 2010 Corolla. I will go over the programs with you.

- The Consumer Cash Incentive from last month of $750 has increased to $1,000.

- The Graduate Program has been replaced this month with "TFS Downpayment Matching of up to $500". That way everyone qualifies for that discount. So as long as you put $500 down, Toyota Finance will match it to a maximum of $500.

- We are still able to offer the $330 off the bottom line on local inventory.

- The interest rates are still 0% for up to 48 months.

So the end result is things got better by $250.

I've attached a quote to this email so you will see a total of $8,830.00 in the downpayment section, $7,000 from you, $500 from TFS for matching the downpayment to a maximum of $500, $1,000 Consumer Cash Incentive and $330 from an internal discount from Ens. You are still getting 0% financing for 48 months. So your monthly payment is only $276.07/month now.

These programs will be in effect until the end of September and the vehicle must be taken delivery of by the end of September. The programs are the strongest they've been this year on the Corolla and we anticipate that will clear the balance of our 2010 inventory.

I'm hoping you will still have an opportunity to stop by our facility on September 6th as originally planned. Should you have any questions before then feel free to drop me an email or give me a call. I also welcome feedback on the information I've given you today.

Have a great week!

Best Regards, Kelly Kachur

Ens Lexus Toyota 285 Venture Crescent


In the name of Allāh, Most Gracious, Most Merciful

Assalāmu ῾alaykum wa Rahmatullāhi Wabarakātuh

If Toyota is offering 48 month 0% interest, there is no problem in financing your car with them. However, if interest will be charged for delay in payments, care should be taken that payments are made promptly and on time.

If you qualify for a cash discount/incentive and/or other discounts, it will be permissible for you purchase the vehicle at the discounted price.

Note: Our answer is based purely on the information provided. We have not gone through the terms and conditions agreed to between both parties.

In order to answer that, kindly forward us the terms and conditions of the contract.

And Allāh Ta῾āla Knows Best

Wassalāmu ῾alaykum

Ml. Rayhaan Docrat,
Student Dārul Iftā

Checked and Approved by: Mufti Ebrahim Desai
Dārul Iftā, Madrasah In῾āmiyyah


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