No Riba
Ethical financing with no interest charged on money lent.
Interest-free structure
بِسْمِ ٱللَّٰهِ ٱلرَّحْمَٰنِ ٱلرَّحِيمِ
Halal Car Finance. A Shariah-compliant path to ownership.
Finance your next car. The Halal way.
Own your next car the halal way, with no riba, a real underlying asset, and a clear path to ownership through Ijara wa Iqtina. We're a credit broker, not a lender, connecting you with Shariah-compliant finance providers.
Finance Any Car
Instant Decision
No Deposit Needed
Initial eligibility check uses a soft search, with no impact on your credit score.
Your Halal Finance Structure
Ijara wa Iqtina
Halal
ChooseYour car
IjaraAgreed rental
IqtinaOwnership
Open To Everyone
Muslims and non-Muslims welcome
No Riba
No Gharar
Asset-Backed
Path to Ownership
No interest is paid. You pay an agreed rental-profit charge. For easy comparison, we also show an APR-equivalent (annualised total charges). Rates from 7.9% APR-equivalent. Representative APR-equivalent 10.9%. Finance is subject to status.
The Foundation
Built on Islamic finance principles.
Halal Car Finance is structured around fairness, clarity and real asset ownership, so every part of the arrangement stays aligned with Shariah principles.
No Gharar
Clear, agreed terms from the outset with no hidden uncertainty.
Transparent agreements
No Penalties
Fair terms throughout, with no late-payment penalties or hidden fees.
Fair by design
Asset-Backed
Financing tied to a real vehicle, not simply an amount of borrowed money.
A real underlying asset
The Simple Principle
Profit comes from an asset-based arrangement, not interest on money lent.
Finance Calculator
Estimate your halal car finance.
Adjust the amount, term and your credit rating to see an illustrative monthly rental under a Shariah-compliant Ijara wa Iqtina structure. No interest is paid, you pay an agreed rental-profit charge.
£3,000£50,000
48 monthly rental payments of
Halal
£0.00
at 0.0% APR-equivalent
Total rental charge
£0.00
Total amount payable
£0.00
Figures are illustrative and for guidance only. Your actual rental, APR-equivalent and terms depend on your circumstances and are subject to status. No interest is paid; you pay an agreed rental-profit charge. Representative APR-equivalent 10.9%.
Our Model
Ijara wa Iqtina
A Shariah-compliant route to owning your car. You use the vehicle through an agreed Ijara arrangement, then ownership transfers to you through Iqtina at the agreed completion point.
HOW THE STRUCTURE WORKS
From using the vehicle to owning it.
Ijara covers the agreed use of the vehicle during the finance term. Iqtina is the agreed transfer of ownership at completion.
01
إجارة
Ijara
The Rental StageThe vehicle you choose is purchased and made available to you under an agreed rental arrangement. You use the car during the term while the finance provider remains the owner throughout the Ijara stage.
Agreed Term
You use the vehicle throughout the agreed Ijara period.
Terms agreed from the outset
02
اقتناء
Iqtina
The Ownership StageAt the agreed completion point, ownership of the vehicle transfers to you through Iqtina. The route to this transfer is established as part of the agreement from the outset.
IMPORTANT TO UNDERSTAND
Ownership does not build up month by month.
You progress through the agreed Ijara term. Ownership transfers at the agreed completion point through Iqtina.
Your Path to Ownership
Select a stage
Your Ijara begins.
You choose the vehicle and the agreement is structured around that specific car. The agreed rental and term are confirmed before the arrangement begins.
You use the vehicle during the Ijara term.
You continue using the car under the agreed rental arrangement while the finance provider remains the legal owner of the vehicle during this stage.
You approach the agreed completion point.
The final part of the Ijara term is completed under the arrangement already agreed at the outset, bringing the agreement towards the Iqtina transfer stage.
Iqtina: ownership transfers to you.
Once the agreed term has been completed, ownership of the vehicle transfers to you through the agreed Iqtina arrangement. The car becomes yours.
Understanding Halal Finance
What is halal car finance?
Halal car finance is a way to fund a vehicle without paying or receiving interest (riba), using a Shariah-compliant structure where the finance is tied to a real asset, the car itself.
At Halal Car Finance it works through Ijara wa Iqtina, a lease-to-own arrangement. You use the vehicle under an agreed rental while the finance provider owns it, then ownership transfers to you at the end of the term. There is no interest, no hidden uncertainty and a clear path towards owning the car.
It is open to everyone. You do not need to be Muslim to choose an interest-free, transparent way to finance a car.
Key Terms
The language of halal finance
-
ربا
RibaInterest on money lent. Not permitted in Islamic finance.
-
غرر
GhararUncertainty in a contract. Terms must be clear and agreed.
-
إجارة
IjaraLeasing. You use the vehicle under an agreed rental.
-
اقتناء
IqtinaAcquisition. Ownership transfers to you at the end.
Is car finance halal?
Conventional interest-based car finance is not considered halal, because it involves riba. An asset-backed structure like Ijara wa Iqtina is designed to be halal, as the profit comes from renting a real vehicle rather than charging interest on a loan.
What makes it Shariah-compliant?
Four things: no riba, no gharar, a real underlying asset, and a clear transfer of ownership. The finance is built around the vehicle itself, and every cost is agreed before you commit.
Can non-Muslims apply?
Yes. Halal car finance is open to everyone, whatever your faith. Many people choose it simply for the fixed, transparent structure with no interest and no hidden fees.
Is it available across the UK?
Yes. Halal Car Finance is available to eligible applicants across the UK. You apply online, receive a decision, and choose a car from a trusted dealership.
Ready To See Your Options?
Check your eligibility for halal car finance in minutes.
Initial eligibility check uses a soft search, with no impact on your credit score.
Understanding Halal Finance
What is halal car finance?
Halal car finance is a way to fund a vehicle without paying or receiving interest (riba), using a Shariah-compliant structure where the finance is tied to a real asset, the car itself.
At Halal Car Finance it works through Ijara wa Iqtina, a lease-to-own arrangement. You use the vehicle under an agreed rental while the finance provider owns it, then ownership transfers to you at the end of the term. There is no interest, no hidden uncertainty and a clear path towards owning the car.
It is open to everyone. You do not need to be Muslim to choose an interest-free, transparent way to finance a car.
Key Terms
The language of halal finance
-
ربا
RibaInterest on money lent. Not permitted in Islamic finance.
-
غرر
GhararUncertainty in a contract. Terms must be clear and agreed.
-
إجارة
IjaraLeasing. You use the vehicle under an agreed rental.
-
اقتناء
IqtinaAcquisition. Ownership transfers to you at the end.
Is car finance halal?
Conventional interest-based car finance is not considered halal, because it involves riba. An asset-backed structure like Ijara wa Iqtina is designed to be halal, as the profit comes from renting a real vehicle rather than charging interest on a loan.
What makes it Shariah-compliant?
Four things: no riba, no gharar, a real underlying asset, and a clear transfer of ownership. The finance is built around the vehicle itself, and every cost is agreed before you commit.
Can non-Muslims apply?
Yes. Halal car finance is open to everyone, whatever your faith. Many people choose it simply for the fixed, transparent structure with no interest and no hidden fees.
Is it available across the UK?
Yes. Halal Car Finance is available to eligible applicants across the UK. You apply online, receive a decision, and choose a car from a trusted dealership.
Ready To See Your Options?
Check your eligibility for halal car finance in minutes.
Initial eligibility check uses a soft search, with no impact on your credit score.
How It Works
From eligibility check to driving your car.
Halal car finance follows four clear steps built around Ijara wa Iqtina. Each stage has a defined purpose, so you understand the journey before you commit.
01
Start here
Eligibility
Check your eligibility
Apply online in minutes and get a quick decision. The initial check uses a soft search, so it does not affect your credit score.
Soft search first
02
Your choice
Choose
Choose your car
Pick an eligible vehicle from a trusted dealership. The finance is built around that specific car as a real underlying asset.
Any eligible car
03
Ijara
Ijara
Begin the agreed rental
Your finance is structured around the vehicle with agreed terms set from the outset. You pay a rental to use the car, with no riba.
No interest
04
Ownership
Iqtina
Drive and own your car
Use the car throughout the term. At the agreed completion point, ownership transfers to you through Iqtina and the car becomes yours.
Your car
A Clear Halal Finance Journey
Know each step, before you begin.
No Riba
Ijara wa Iqtina
Path to Ownership
Independently
Shariah Reviewed
Trusted By
10,000+ customers
Why Choose Halal Car Finance
Car finance with clear principles.
Halal Car Finance gives you a clear, ethical way to finance your vehicle while following an Islamic finance structure. You know what the arrangement is based on, how it works and the route towards ownership.
Structured without riba
The finance follows an Islamic structure rather than conventional interest-based lending.
Finance any eligible car
Choose a vehicle from a trusted dealership and the finance is built around that real asset.
No deposit needed
Get started without an upfront deposit, subject to status and eligibility.
A clear path to ownership
Ijara wa Iqtina provides a defined route from using the vehicle to owning it at the agreed point.
The Simple Principle
Know how your car finance is structured before you commit.
Who It Is For
Who is halal car finance for?
Halal car finance is open to everyone. You do not need to be Muslim to choose an interest-free, transparent way to finance a car.
Whether the vehicle is for personal use or for your business, the finance can be structured around the car through Ijara wa Iqtina.
Personal Halal Finance
For personal and family use
For commuting, family journeys, upgrading your vehicle or moving to an electric car, financed the halal way.
Explore Personal Finance
Business Halal Finance
For business and company vehicles
For sole traders and businesses financing company cars, vans or a growing fleet under an Islamic finance structure.
Explore Business Finance
Open To EveryoneMuslims and non-Muslims welcome
Across The UKAvailable to eligible applicants
One Halal ModelIjara wa Iqtina for both
Guidance
Guidance from the Quran
بِسْمِ ٱللَّٰهِ ٱلرَّحْمَٰنِ ٱلرَّحِيمِ
وَأَحَلَّ ٱللَّهُ ٱلْبَيْعَ وَحَرَّمَ ٱلرِّبَا
They say, ‘Trade is just like interest.’ But Allah has permitted trade and has forbidden interest.
No interest. No compromise. Only fair, transparent transactions built on real assets.
The Structure Explained
How does Islamic financing work?
01
The vehicle is owned within the finance arrangement during the term
Throughout the Ijara period, the vehicle you choose is owned within the finance arrangement while you use it under agreed terms.
02
You make regular rental payments throughout the term
You pay an agreed rental for using the vehicle across the length of the Ijara term.
03
Each payment covers the rental and moves you along the path to ownership
Each payment is the agreed rental for using the vehicle (the provider's profit) while you progress along the agreed path towards owning it.
04
At the end of the term, ownership transfers to you
At the agreed completion point, ownership of the vehicle transfers to you through Iqtina, as set out in the agreement.
Your Journey
Ownership Transfer Timeline
Start
100% Yours
This shows your progress through the agreed term. Ownership transfers at completion, not gradually each month.
At the end of the contract, a separate Sale and Transfer agreement is signed to legally transfer ownership of the vehicle to you. If you have met your Ijara obligations, there is nothing left to pay.
APPLY
Before You Apply
A Few Details. Then We Can Get Moving.
Applying for halal car finance doesn't need to feel complicated. We start with a few essentials about you, your driving status and your financial circumstances.
Keep these details to hand and you'll be better prepared to move through the eligibility process and onto choosing the right vehicle.
This is the starting point, not an approval checklist.
Your application is still assessed individually and
additional information may be requested where needed.
Halal Car Finance · Application
Application Essentials
What to have ready before you begin
06
Essentials
01
UK Residency
You should currently be resident in the UK.
02
Aged 18+
Applicants must be at least 18 years old.
03
Valid Driving Licence
Have your current licence details available.
04
Stable Income
Information about your regular income.
05
UK Bank Account
An active account for your finance arrangement.
06
Phone & Email
Current contact details so we can reach you.
Driving Licence
Keep it to hand
Income Details
Regular income
UK Bank Account
Active account
Independent Shariah Review
Reviewed with Islamic principles in mind.
The Ijarah documents behind this finance structure have been independently reviewed by Alhamd Shariah Advisory, providing added confidence that the arrangement has been assessed against recognised Shariah principles.
Independent ReviewShariah documentation assessed
Ijara DocumentsReviewed finance structure
Clear Ownership PathIjara wa Iqtina structure
حلال
Our Approach
Islamic finance is about more than changing terminology. The structure behind the transaction is what matters.
Check My Eligibility
Soft search initially, with no impact on your credit score.
IndependentlyShariah Reviewed
SHARIAH REVIEW CERTIFICATE
Verified Document
View Certificate
Trusted By Customers
Making halal car finance simple for 10,000+ customers.
A really clear, straightforward process from start to finish. Everything was explained properly before I committed and I got my new car quickly.
Quick and simple. My account manager was helpful and professional throughout, and responded quickly to every question I had.
The agreement was explained in detail and I was happy to sign. I love my new car and the whole experience was smooth and honest.
I applied and picked up my car within a few hours. Outstanding service from all the team, could not fault it.
Excellent service from start to finish. Every query was answered efficiently and clearly. Highly recommend.
First class from beginning to end. Patient, knowledgeable and nothing was too much trouble. A credit to the organisation.
10,000+
Customers helped
Soft Search
No impact to apply
Any Car
From trusted dealerships
No Riba
Shariah-compliant structure
Frequently Asked Questions
Halal car finance, your questions answered.
Understand the structure, how Ijara wa Iqtina works, what happens during the finance journey and what to expect before you apply.
01 What is halal car finance?
Halal car finance is a way to fund a vehicle without paying or receiving interest (riba), using a Shariah-compliant structure where the finance is tied to a real asset, the car itself. It works through Ijara wa Iqtina, a lease-to-own arrangement with a clear path towards ownership.
02 How does Ijara wa Iqtina work?
Ijara is the rental stage. The vehicle is the underlying asset and is made available to you under agreed terms while the finance provider owns it. Iqtina is the route to ownership, with ownership transferring to you through a separate agreement at the end of the finance journey.
03 Does halal car finance charge interest?
No. The arrangement is structured without riba. Rather than charging interest on money lent, the finance is based on an Ijara arrangement involving the use of a real underlying vehicle. You pay an agreed rental-profit charge, not interest.
04 Is halal car finance available across the UK?
Yes. Halal car finance is available to eligible applicants across the UK. You apply online, receive a decision, and choose a car from a trusted dealership.
05 Can non-Muslims apply?
Yes. Halal car finance is open to everyone, whatever your faith. Many people choose it for the fixed, transparent structure with no interest and no hidden fees.
06 Who owns the vehicle during the agreement?
During the Ijara stage, the vehicle is owned within the finance arrangement while you use it under the agreed rental terms. This ownership relationship is an important part of what distinguishes Ijara from a conventional interest-based loan.
07 What happens at the end of the finance term?
The Iqtina part of Ijara wa Iqtina provides the agreed route to ownership. Once the required terms of the arrangement have been completed, ownership of the vehicle transfers to you according to the agreement.
08 Has the Shariah structure been independently reviewed?
Yes. The Ijarah documentation supporting the finance structure has been independently reviewed by Alhamd Shariah Advisory. The review certificate is displayed on this page so you can inspect the supporting document directly.
09 Will checking my eligibility affect my credit score?
The initial eligibility check uses a soft search, so checking your eligibility does not impact your credit score. Further checks may apply later in the application process where required.
10 Do I need a deposit for halal car finance?
No deposit is needed to get started, subject to status and eligibility. You can check your eligibility first with a soft search before deciding how to proceed.
بِسْمِ ٱللَّٰهِ ٱلرَّحْمَٰنِ ٱلرَّحِيمِ
Ready to finance your next car the halal way?
Check your eligibility for halal car finance and take the first step towards a vehicle finance structure designed around Islamic finance principles.
Your Finance Structure
Ijara wa Iqtina
Halal
Choose
Your Car
Ijara
Agreed Rental
Iqtina
Ownership
Halal Car Finance
Built around your next car
✓Islamic Finance Structure
✓Real Underlying Asset
✓Independently Reviewed Documents
✓Initial Soft Search
About us
We pride ourselves on helping as many people as possible drive away in the car they want, without compromise. We understand that every car buyer has a different set of circumstances, so we work tirelessly to ensure we find the right car finance deal for you. Get your personalised quote today.
Quick links
Contact info
- The Charter Building, Charter Place, Uxbridge, UB8 IJG
- info@halalcarfinance.co.uk
- 020 3917 4707
Halal Car Finance is a trading name of CarFinanced Limited. Registered address: The Charter Building, Charter Place, Uxbridge, UB8 1JG, England. Company number: 13109658.
VAT reg number: GB479628529. Information Commissioners Office (ICO) under registration number: ZA847951.
CarFinanced Ltd t/a Halal Car Finance is authorised and regulated by the Financial Conduct Authority under reference number 1014460.
We look to find the best rate from our panel of lenders and will offer you the best deal that you’re eligible for. Depending on the supply route of your vehicle, we may charge a separate administration fee of £299. We will receive a commission from our panel of lenders when a finance agreement is successfully arranged. This commission may be a fixed fee or a fixed percentage of the amount borrowed, this does not influence the interest rate you’re offered in any way. All finance is subject to status and income. Applicants must be 18 or over.
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