---
title: "Auto finance | IslamicOpenFinance™"
description: "Dealers want a decision at the showroom; the lessor has to own the car before the lease starts. Ijarah at the dealer, Murabaha car finance, Lessor maintenance and takaful and more for Auto finance on IslamicOpenFinance™."
url: https://islamicopenfinance.com/sectors/auto-finance/
lang: en-GB
source: "IslamicOpenFinance"
---

> Dealers want a decision at the showroom; the lessor has to own the car before the lease starts. Ijarah at the dealer, Murabaha car finance, Lessor maintenance and takaful and more for Auto finance on IslamicOpenFinance™.

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3. Auto finance

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.

[Request a demo for this sector](https://islamicopenfinance.com/#start) See the live demo

Financial products

## What you build on IslamicOpenFinance™

1

### 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.

2

### Murabaha car finance

The financier buys and resells the car at a disclosed price, paid in instalments.

3

### 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.

4

### Total-loss handling

When the car is lost, the lease ends as the contract provides and takaful proceeds are applied accordingly.

5

### 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.

Customer Car dealer Islamic bank or finance company Takaful operator Vehicle registry Workshop

[Standard setters and regulators in the directory](https://islamicopenfinance.com/directory/?sector=auto-finance)

Typical flow

## A typical flow, step by step

1. **Application at the dealer**
2. **Approval**
3. **Financier buys the car**
4. **Lease signed**
5. **Rentals**
6. **Maintenance and takaful events**
7. **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

**Demo** All 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

## Key terms for this sector

[Ijarah](https://islamicopenfinance.com/glossary/ijarah) [Ijarah muntahia bittamleek](https://islamicopenfinance.com/glossary/ijarah-muntahia-bittamleek) [Murabaha](https://islamicopenfinance.com/glossary/murabaha) [Takaful](https://islamicopenfinance.com/glossary/takaful)

Other sectors

## Related sectors

[Consumer Hajj and Umrah travel and savings Pilgrims save for years; travel packages, quotas and dates all depend on the Hijri calendar. - Goal-based savings - Operator payments - Hijri-aware schedule See the sector](https://islamicopenfinance.com/sectors/hajj-umrah/) [Consumer Retail Islamic banking Customers expect instant, app-first banking; the contracts behind it still run on systems built for interest. - Murabaha personal financing - Qard and wadiah current accounts - Profit-sharing investment accounts See the sector](https://islamicopenfinance.com/sectors/retail-banking/) [Consumer Home finance The longest contract a household signs, with ownership changing hands every month. - Diminishing musharakah - Ijarah muntahia bittamleek - Valuation and title evidence See the sector](https://islamicopenfinance.com/sectors/home-finance/)

## Build Auto finance on IslamicOpenFinance™.

[Request a demo for this sector](https://islamicopenfinance.com/#start) [All sectors](https://islamicopenfinance.com/sectors/)