Question Summary:
Car dealer and purchaser

Question Detail:

 
A car dealer offering 0% apr on car instalment. Car cash value is £10,999 but they are charging £12,500 since the finance company is a third.party and they are charging their fees of £1500 approx. the dealers are saying that this is 0% apr as the fees will go to.finance company. will this be considered as an interest-free transaction although I will be paying more than what the car is worth over the period of 5 years? although the difference is going to the finance company and the dealer is adamant it is 0% apr (non-muslims) Im not convinced.
 

Answer :

In the Name of Allah, the Most Gracious, the Most Merciful.
As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh.
Please give details of the financing company’s relationship with both the car dealer and purchaser. Also, please explain where the fees come in to the contract.
It may be expedient to forward us a link for this particular scheme for a thorough understanding.
And Allah Ta’āla Knows Best
Hisham Dawood
Student Darul Iftaa
Chicago, USA 
Checked and Approved by,
Mufti Ebrahim Desai.