Anyone know of a bank/credit union that can roll interest rates into car price?

[IsleOfMs]

I'm not normally one to encourage people to put weight on what a "god" thinks about anything.

However, if they're interested pleasing their god, then they should define interest. It's money paid for the privilege of borrowing money. So even if you get a contract that shuffles the terms around so that the lender still gets its money but it's not called interest, it definitely still *is* interest. You can do a lump sum upfront payment but you are paying interest either way.

[IsleOfMs]

Originally Posted by Mosaud1998

But, won't they still technically be paying the interest? It won't be added daily. Instead, they paid the interest in one going.

LOL I just said the same thing in another reply. Yeah, they would. But I thought that's what you were trying to do. You said you wanted to pay the more for the car in order to get zero interest. I think that most dealers would do that for you. But I think it's a shell game that doesn't achieve anything.

If you're literally wanting a lender to just give up the interest payments without getting them back in another equivalent way, then best of luck but probably won't happen.

Thought experiment for your parents...

Sales price = $50k
Interest results in total paid over time = $57k and that $7k extra is a sin

They're asking $50k but are prepared to haggle down to $45k. Is it a sin to pay $50k for the $45k car?

[dreamingat30fps]

Originally Posted by Mosaud1998

But, won't they still technically be paying the interest? It won't be added daily. Instead, they paid the interest in one going.

TECHNICALLY if they are borrowing money they are paying interest period. Unless it's a manufacturer promo loan. Banks are in the business of making money. So the interest is being paid one way or another.

Sounds like you want the car more than they do. If they want to follow the religion then they can pay cash or go to a niche religious lender and probably pay more. I would imagine by now THEY know exactly what they should do. It's irrelevant what you would do since you don't follow the religion.

Originally Posted by bmwspice

I'm not normally one to encourage people to put weight on what a "god" thinks about anything.

However, if they're interested pleasing their god, then they should define interest. It's money paid for the privilege of borrowing money. So even if you get a contract that shuffles the terms around so that the lender still gets its money but it's not called interest, it definitely still *is* interest. You can do a lump sum upfront payment but you are paying interest either way.

No you don't understand. Gods may me all powerful and all knowing, but they are pretty bad at math. Just shuffle some numbers around and they don't have a clue what's going on.

[Mosaud1998]

Originally Posted by dreamingat30fps

No you don't understand. Gods may me all powerful and all knowing, but they are pretty bad at math. Just shuffle some numbers around and they don't have a clue what's going on.

God know math?

[IsleOfMs]

Originally Posted by dreamingat30fps

No you don't understand. Gods may me all powerful and all knowing, but they are pretty bad at math. Just shuffle some numbers around and they don't have a clue what's going on.

It's an interesting coincidence that gods didn't know anything that the Bronze Age shepherds that wrote their holy books didn't know.

[spazzyfry123]

Locking down in 3..2...1..

[vreihen16]

Genuinely curious about how leasing is viewed in this situation?????

[paquet]

The 300 you have mentioned...? I'm having trouble calculating it.
Did you mean 3000?

[Mosaud1998]

Originally Posted by paquet

The 300 you have mentioned...? I'm having trouble calculating it.
Did you mean 3000?

No $300

[Mosaud1998]

Originally Posted by vreihen16

Genuinely curious about how leasing is viewed in this situation?????

I don't even know. What's funny is alot of Muslim folks lease......

[CYANiDE]

Originally Posted by Mosaud1998

No $300

Did you only finance like $10K?

[paquet]

Originally Posted by Mosaud1998

No $300

Can you explain the math please?
I'm having a moment today and can't seem to figure it out.

[Mosaud1998]

Originally Posted by CYANiDE

Did you only finance like $10K?

Roughly

[wtwo3]

Originally Posted by vreihen16

Genuinely curious about how leasing is viewed in this situation?????

Same way as financing. Interest is interest whether you call it an apr or a money factor. I would say most Muslims especially here in the US just end up financing/leasing beacuase it's almost impossible to avoid interest. If not for auto loans then certainly for home loans. Some will suggest minimizing dealing with interest where you can, while other areas may be unavoidable. I.e. financing a house because paying cash for one is unreasonable, but avoiding financing/leasing a car and rather just pay cash for a cheap car.

[CYANiDE]

Originally Posted by Mosaud1998

Roughly

That explains why everyone is confused. Honestly, at 1.9% I would've financed as much as possible.

[Mosaud1998]

Originally Posted by CYANiDE

That explains why everyone is confused. Honestly, at 1.9% I would've financed as much as possible.

My plan was to pay cash. But, I would lose $1,000. So, I just financed some. Plus, I've got light credit so the car loan will help.

[Darth One]

Originally Posted by Joe T

here you go

https://www.lariba.com/sitephp/index.php

This thread has been a fascinating read. I get super interested learning about different practices and beliefs, and how they come into existence.

That being said, this site above actually says their model has been approved by Islamic scholars (my apologies if I'm misstating what a fatwa is)…did you read it?

it's important to see what your actual equivalent interest rate would be, to make sure it's competitive…but if you really want to observe your religion strictly, why not do this?

[wtwo3]

Originally Posted by Darth One

This thread has been a fascinating read. I get super interested learning about different practices and beliefs, and how they come into existence.

That being said, this site above actually says their model has been approved by Islamic scholars (my apologies if I'm misstating what a fatwa is)…did you read it?

it's important to see what your actual equivalent interest rate would be, to make sure it's competitive…but if you really want to observe your religion strictly, why not do this?

It's certainly an option, but reading the fine print they're still circumventing interest through a complex lending system. In this case they're charging "fair market value" as monthly income... that fair market value based on income produced by local properties which... are interest based.

It honestly just comes down to personal beliefs. Islam doesn't have a centralized authority anymore similar to say, Christianity and the pope. So "fatwas" are only as good as who one chooses to follow. And there's been plenty of atrocious fatwas thrown around in the past. I think as long as one follows the basic principals (be kind, help the poor, don't murder people, don't steal, etc etc).. nuances such as this are up to personal belief and there's varying degrees.

[chassis]

Originally Posted by Mosaud1998

The last car they brought was the Mercedes. They paid cash back in 2018

Why don’t they pay cash now? Do they want you to earn the commission on the finance deal?

[SpeedBuggy]

Originally Posted by Mosaud1998

Nah, you're fine. I told my parents that they can take the loan and pay the car off in a year or two. They can't add like $25 extra a month towards the loan with BMW. Or they can just keep the minivan. I mean, yeah we're getting like $2k above retail for it but it runs and drives fine. They don't NEED a new car. It's more of a WANT. Plus, it's a Toyota. So, I can have it repaired at Ford (were I work).

I think BMW is giving an okay rate for 36 months. Lexus is at 4.5% for 72 months on CPO cars. If they downgrade to an X5, they're willing to pay cash. But an X7 is a bit too much to pay cash for.

I don't understand that they can't add $25.00 a month towards the loan with BMW. Are you saying BMW will not allow extra payments?

I have a 1.9% loan through BMW financial and use Pegasus Pay set up through the selling Dealership. Make my regular monthly automatic withdrawal payment split over every 2 weeks. Works out that you make extra payments and end up paying the vehicle off early. Depending on term length could be 6 months early.

Disappointing where interest rates are at today. All my purchases have been financed through BMW Financial and have never paid higher than the 1.9% except one which the rate thru BMW was 3.9% and my dealership got me 3.49% through a local bank.

Not sure how to get around the interest thing other than paying cash or pay down the loan early. Also, typically I think you're paying more towards the interest than the principal during the first half of the loan life.

[Mosaud1998]

Originally Posted by chassis

Why don’t they pay cash now? Do they want you to earn the commission on the finance deal?

Don't want to toss $70k cash for a car . Mercedes was 40k..

If I was selling the car...I'm cracking them

[Mosaud1998]

Originally Posted by Darth One

This thread has been a fascinating read. I get super interested learning about different practices and beliefs, and how they come into existence.

That being said, this site above actually says their model has been approved by Islamic scholars (my apologies if I'm misstating what a fatwa is)…did you read it?

it's important to see what your actual equivalent interest rate would be, to make sure it's competitive…but if you really want to observe your religion strictly, why not do this?

I contacted them. They don't work with car loans unfortunately.