0:31:50 - Late payments is a type of Riba

- Exception given for non-debt related contracts (delayed pizza delivery) - Another exception given is necessity 0:57:00 - Contracts are considered according to their realities and not their names/wordings 0:59:00 - admin/membership fee used as a loophole to avoid Riba 1:01:00 - Shariah compliant financing? - HP Hired purchase (the bank buys the vehicle and sell it to in installments at a higher price) 1:03:30 - This can't be a binding contract وعد ملزم 1:04:40 - What is a buy-down? - pay a larger down payment to make it 0% APR. 1:05:30 - 0% APR is not necessarily zero interest, it may actually be 0.something% 1:13:40 - A survey was conducted in Canada (2023) encompassing 22 different car dealerships and the lowest APR offered was 0.99%. So there has to be some sort of percentage involved even if a person puts down a buy-down. 1:06:00 - Some may offer zero interest only for a particular term, if it goes over interest is applied 1:09:00 - Some charge interest and claim it is merely profit on the asset, if so why is finance company involved, and why is the contract arranged in such a way where the profit is on the loan and not on the asset?! 1:11:00 - In financing contracts, the car dealer is not the actual seller, they are merely acting as a middleman between the customer and the financer. Their commission is included as a percentage of the interest rate (it varies, but 2-3% is average) 1:24:00 - Some main dealers have their own finance department (like Toyota & Ford), does this make a difference? Not really - this is just a Loophole to avoid interest! 1:15:00 - Fatwa of Ibn Baz 1:17:40 - SUMMARY (i) - The traditional financing agreement involving 3 parties; customer, dealer and financing company, IS HARAAM! (ii) 0% APR - is impermissible if: (a) it's fixed term only, eg. first 6 months only... (b) They say 0%, but it's actually 0.something% - no matter how small the percentage is, it still includes interest! eg. 0.49% (c) it is 0% for the full term, but it is done through the bank - this is a loan...this is permissible as long as there's no additional costs. The bank profits from initial sale price (profit from asset). BEWARE O MUSLIMS!