Wots ur opnion about Leasing

[mirza_yasir]

Well i wanted to find opinion of u guys abt the car leasing from banks and other financial institutions?? i'll also state my own feelings abt it but not now first u guys. Have u ever did research abt it b4 leasing a car

MOD EDIT: It has already been discussed in detail, try the search function.

[Newton]

if u can afford to pay the installement then go for it. there is absolutely nothing wrong in it this way cash keeps in rotation which is very necessary for economic growth of a country :). Lah mein tou economist jaisee batain karnay lag gaya

[spectra]

its haram at first place.
debt should be avoided at all costs.

[szuberi]

economies dont ususally grow without credit....if you dont have the cash to buy the new car you want...and you have some reservation about the interest factor (which is alright)...dont buy it then.

save up and then buy some used car....and if you ask my opinion....nobody or no one system is perfect....so you can go lease the car....and achieve what you dreamt of.

[nak]

Leasing aint HARAM..i've heard from a maulana in QTv that its not haram n the extra charges which u have to pay is not exactly interest but service charges...afterall they r providing u with a kind of service so its their right to charge for it.

[mirza_yasir]

[highlight]Well the term n conditions r right according to the islamic law. There is no issue that the terms r haram. The basic prob comes when the financial insitution is chosen. Any business which such financial insitution which deals with the money of "Ribah" is haram. When it comes to the car leasing the process is alright but banks from which u obtain car is more important as most of the banks here r commercial. So the bank should be ribah free final conclusion. Got this info from famous religios scholor Doc Zakir Naik in a TV show i have it on disk anybody want it can ask for it in Islamabad.

Also the only ribah free bank in Pakistan according to my info is the Bahranian bank Albaraka.

So kindly look into such matters very closely b4 getting into it as this life is temporary and v hav to go towards eternal life.

V can not distroy our "Aakhrat" for this temporary life. ALLAH Bless u all[/highlight]

[ateekt]

@ mirza_yasir:

Nice one bro...! Thumbs up for you...! Keep it up...!

[Storm]

I believe that if you can afford only a bicycle than you should go for that rather than leasing a rolla. leasing is for those who can't afford something but want to own it. at the end you end up paying more than what the car is worth anyways. why not just save up and buy it at a later date?

[hsnmz]

Salam

Leasing is foe those who don't want to loose their money. Leasing is not Haram in Islam. Its available in the form of Mudarbah in Shariah. The problem is the way of working of commercial banks. If you lease a Car the Bank actually gives you a loan and in return they take extra money for that which is Riba and is the worst of Harams. The alternative that Islamic banks like Meezan (I personally recomend this bank as I have thoroughly investigated about it and found it to be riba free and complies with Shariah rules and regulations. It is being monitored by 4 authentic Islamic Scholars.) provide is that the bank buys the car and is the owner of the car. Than that bank sells its car to you. Now shariah allows you to sell your thing at any price that is agreed between you and the buyer. You can also sell your thing on installments, the condition here is that the buyer should be aware of the actual price of the thing he is buying as well as the price in case of installments, and that is known very well incase of cars.

So leasing is Halal only if you do it the Halal way and Meezan bank does it very well. they even don't have the Insurance*. as an alternative they have Takaful again which is according to the shariah.

*Insurance is not Haram in Shariah, its only that the insurance companies have their investments in banks and other institutions that deal in Riba (interest) and this makes dealing with insurance companies Haram.

In Quran Allah (SWT) and Prophet Muhammad (SAWA) have announced war against those who deal in Riba. It includes all those who gives Riba, who takes Riba, who is a witness of such deal which has Riba, who refered someone to a deal which involved riba i.e. anyone who has any kind of invlovment in riba. Thats why Ulamas (the true ones) nowadays discourage people to work in banks as this invloves them in dealings of riba. Dr. Zakir Naik even said that job in Banks is haram.

So my request is that be very very carfull in your dealings. For leasing, choose such institute that is purely based on Shariah.

[hamdani_08]

@ storm bhai

"leasing is for those who cant afford something and still want to buy that"

i wud have to say very bad thinking

rather u shud be saying that it enables more ppl to improve their lifestyle

and the theory that u have to pay more at the end for the car,,,,,,,,,,,,,is just wrong

actually when the bank offers u a loan at one moment in time,,,,,,,,,,,the value of that money decreases with time,,,,,,,,,,so the bank takes that depreciation from the customer

[Storm]

[/i]

Reply By : hamdani_08 on 8/9/2006 1:00:33 PM
and the theory that u have to pay more at the end for the car,,,,,,,,,,,,,is just wrong[/i]

Are you sure about that? try leasing a santro for 5 years with a lack+ deposit. A 6 lack 39 thousand car works out to cost you 9lack 39 thousand......

[hsnmz]

Someone mentioned the name of Albaraka Bank. I am pesonally not very convinced with them. I have seen their working environment and have also discussed with some resposible people and am not satisfied with them.

[hamdani_08]

@ storm bhai,,,,,,,,u just forgot that out of the 3 lac extra amout ,,,1lac 50k is the insurance for 5 years ,,,,,,,,,,and the rest is the interest or u can call the depreciation

so 1 lac 50 k in 5 years,,,,,,,,i-e 2.5k / month is nothing ,,,,,,,,,,,when u consider the fact that if u start colllecting funds to buy the 6lac 39 k car ,,,it wud take u 5 years ,,,,,,,,,,,,so why not get the car now instead of waiting for 5 years

secondly,,,,, i dont think that 1.5 lac has some value these days and after 5 years it means nothin,,,,,

on the other hand spending 6lac 40 k cash from ones account is rather fullish ,, ,,,unless u have millions in the bank,,,,,,,,bcoz u can do some other constructive job from this money,,,,,,,,

lastly i wud say that everything depends on a person's financial situation,,,,,,,,,,,,,,

i-e if one has loads of money in bank then there is no point getting a car leased,,,,,,,,,,,,but if one is a white collar peson then there is no better thing for him than leasing

by the way these days interest rates have gone too high ,,,,,,,so one shud be very oparticular in choosing the right bank

[autophile]

Well leasing is ok if your income allows you to pay montlhly installments. It is a good deal I think even if you have to pay more than the actual price coz, if you save up money for five years the cars would be dearer plus the yearly inflation would also depriciate the rupee value. So in the end it is evened out.

About halal and haram most banks are offering car leasing through Islamic Modarba an Islamic system of financing. When I went for leasing with UBL drive the papers or contract I ended up signing was that of Islamic modarba.

Almost all the businesses and industries run on financing. The only thing haram is interest.

Suppose I borrow money from Mr A for one year and we agree to pay him rs 120,000 after the end of one year it would be interest. But if I ask Mr A to become my partner and invest 100,000 rupees in the business and decide about the percentage of profit to be shared then it is not haram and thats how modarba work. Bank and you both own the car and decide on the percentage to be paid to bank for offering this service.

[hsnmz]

Salam

Its true that many banks nowadays offer Mudarbah, but be carefull, as I have observed they have only changed the terms used for interest and are not purely dealing in Modarbah. So please be very carefull. As one of Hadith of Prophet Mohammad (SAWA) narates that a time will come when people will change the name of Sharab and drink it, meaning that they will cover the haram thing with halal name or label and use it.

So again I request you to be very carefull, as Riba ot interest are the worst of harams, even worst than Zina or any other haram and it will totally destroy you

[robin]

personally i dont support the idea of leasing, neither do i support the comments of Dr. Zakir Nayak, he might be good in comparative studies but there are some contradictions too in his philosophy, so its better not to discuss Islam and verdicts of muslim scholars here.

We muslims all know what is allowed and what is forbidden. May God help us choose the right path and give us strength to follow it. Amen

[hamdani_08]

@ robbin

islam is the only way of life that supports LOGIC

do u find anything wrong in the logic of leasing

[hsnmz]

Salam

@ Robin its astonishing that you are clear about all that is Halal and Haram. Kindly if I can have your contact so that I may consult you incase I am stuck somewhere. because so far i have not met anyone who can claim this, even the very pious (mutaqi) people don't claim that.

This is what is wrong with us being born in a muslim family we think that we are automatically fed with all this information. Believe me this is a big misconception a needs to be corrected.

[spectra]

I am a finance professional and have evaluated many proposals for leasing from many banks. Both my brothers in law are bankers. You people can manipulate the words for youyr own reasoning, justification and Satisfaction but the way they make calculations for leasing installments are purely based on the concept of compound interest. Its all sugar coated in the name of religion (check our level of business ethics and beleifs)
I know most people will not beleive what i am saying but please dont base your opinions on as little kowledge as someone told u once.
Noone can claim to be an authority here but please dont give invalid reasons just because u have got leasing done for your car.

Neem Hakeem Khatra e jaan

Remember

[hsnmz]

Salam

@ Spectra there is a very little difference, a very thin line between haram and halal mostly in cases of financial dealings. I'll give you an example, suppose there are 2 couples (man and woman). They live in a house, have children, and are living a very good life. Now one of those couples had their Nikkah whereas the other couple didn't. Now if you look at both of them they are living similar kind of lives in all respects. but if you look at them through the lense of Shariah One couple is spending a Halal life whereas other is living a Haram life.

So my point is that what I am refering to in my posts above is based on, as I mentioned earlier aswell, very keen and thorough research. Its not for the sake that i am soumething special, beleive me I am not but what I am telling you is true and valid as these things have been discussed by very goood people, not me I am just conveying what I learnt.