Question:
Is it halal to lease a car if the owner is not financing it? Since I’m not owning the vehicle and I don’t plan to buy it at the end, can I consider it as renting a car? Is it permissible to have full insurance coverage for the leased car? And who is supposed to pay for the maintenance fee in this situation, considering I’m not the owner?
Answer:
Yes, in Canada, the U.S., Europe, and other Western countries, it is permissible to enter into a car lease agreement because this is essentially a rental contract. It doesn’t matter if the owner of the car is financing it or not—this does not affect the lease. What matters is that you do not buy the car at the end, because that would create a new contract with the bank, which would be impermissible.
If both the lessor (the one leasing out the car) and the lessee (the one using the car) agree that the lessee will take responsibility for regular maintenance or any damages, this is acceptable—especially since full insurance usually covers such matters.
In these countries, the law requires any leased car to have full insurance. Since this is a legal requirement and considered necessary, it is permissible to have conventional full insurance in this case. However, if you are in a Muslim country, you should look for takaful (Islamic-compliant insurance) instead.