Halal Car Financing Policy

Interest (Riba) is generally considered one of the major sins in Islam and is explicitly discouraged in the Qur’an. Allah (SWT) explicitly makes business permissible (halal) and interest (riba) forbidden (haram). Allah (SWT) tells us in the Holy Qur’an to not engage in interest-based transactions/investments:

“O you who believe! Fear Allah and give up what remains [due to you] of interest, if you are true believers.”
(Surah Al-Baqarah, Ayah: 275–279)

High levels of interest can lead to debt and financial insecurity, exploiting people on low incomes and without a financial safety net. Islam instead encourages non-interest-based giving, charity, and long-term investments for the benefit of others—such as sadaqah jariyah and waqf projects. Zakat also ensures a social security net for people in need.

May Allah protect all of us from interest-based transactions, Ameen!

At GoAuto Center, we offer Shariah-compliant car financing

Based on ethical and interest-free principles, our model follows a Murabaha-style agreement, where you know the total cost upfront with no hidden interest or riba.

Key Terms:

• Due to the budget limitation, we are currently offering short-term financing. 

• Minimum Down Payment: 50% to 70% of car price
  • Example: For a $10,000 vehicle, down payment starts from $5,000

• Remaining Balance: Paid in equal monthly installments up to 12 months

• Flat Processing Fee: $250 (non-refundable, includes application processing, collection, lien registration and admin costs)

• No Interest:
  100% halal, transparent, fair, and no penalty for late payment or early payment.

• Default:
  If two payments are missed, the car will be repossessed by GoAuto Center. A refund will be issued based on the resale value minus the remaining loan balance.

Note: Approval is subject to eligibility, income verification, and guarantor availability. If everything is good, you can get approval in a minute!

For inquiries or to apply, please contact us directly.