Car financing

[yoboy]

Its all interest/haram, your basically paying more for a car. People who could only afford a mehran now are buying a cultus through the bank instead. Why not save your money for a while and then buy the car. There is no blessing in something you got through means against your religon, therefore you wont be happy with your purchase.

[autophile]

Avoid UBL at all costs, they increase the interest rate after one year. IN my case they jacked up the rate from 7.8 percent to 11 percent. Search forums for the previous stories.

[sprinter]

My experience with car financing is yet unique that I have been able to cancel it before car delivery loosing only processing fee.

In Feb 05 I booked through Meezan bank (Islamic) and paid installments till August 05. My car was to be delivered on 22nd Aug. But then I had to leave for UK and I decided not to take the delivery.

This is one of the cases where Islamic banks are different from other banks. Their contract allow you to cancel it at any time and I did that.

As far interest rate is concerned the islamic bank calculates rental and that also uses the prevaling interest rate which creates confusion. Rental also does not change what is agreed in the beginning as people experience that in conventional bank with increase in discount rate the interest rates which were not fixed were increased as well and people have to suffer .

[awaishassan.aim]

i
will advise you to not go ever with ALBARKA (Burj )bank, they always do mess with you, i had such a bad experience with them, they always play with kibor rate but if kibor rate goes down they dont lower down installment they do say that i will be fixed unless your interest rate will go down.