Ijarah at the dealer
The financier buys the car from the dealer, records ownership, and leases it to the customer with rentals on business days.
Consumer
Auto finance
Dealers want a decision at the showroom; the lessor has to own the car before the lease starts.
Car finance is often offered as ijarah, where the financier owns the car and leases it, or as murabaha, where it buys and resells it. Each has its own order of steps and its own allocation of risks such as major repairs and total loss. IslamicOpenFinance™ gives dealers and financiers a single flow with those steps enforced.
Financial products
What you build on IslamicOpenFinance™
Murabaha car finance
The financier buys and resells the car at a disclosed price, paid in instalments.
Lessor maintenance and takaful
Major maintenance and the car's takaful stay with the lessor under ijarah, and are recorded as the lessor's obligations.
Total-loss handling
When the car is lost, the lease ends as the contract provides and takaful proceeds are applied accordingly.
Ownership transfer
At the end of an IMB lease, the transfer by gift or sale is executed and the registration change recorded.
Value chain
The actors in this chain
IslamicOpenFinance™ connects them with one contract model, one policy and one evidence trail.
CustomerCar dealerIslamic bank or finance companyTakaful operatorVehicle registryWorkshop
Typical flow
A typical flow, step by step
- Application at the dealer
- Approval
- Financier buys the car
- Lease signed
- Rentals
- Maintenance and takaful events
- Transfer of ownership
Live demo
See it in the terminal
Omar leases a car from Sahel Bank Islamic window (demo); a major repair is borne by the lessor and ownership passes by gift at the end. Demo data
DemoAll institutions, people, amounts and events are fictional demonstration data. Nothing here is a Shariah ruling, an offer or advice; approving a product is for each institution's own Shariah board and regulator.
Glossary