Halal private lease: more than just no interest

More and more people are discovering private lease as an easy way to drive a (new) car. Various forms of halal private lease will become available for Islamic motorists. What’s behind that?

A private lease contract consists of a number of components: the consumer price of the car, the (expected) residual value of the car at the end of the contract, maintenance and repairs, insurance, motor vehicle tax, assistance and interest. Within the Islamic religion, inter alia, charging interest is prohibited. Paying for it is also not allowed.

A halal private lease contract therefore has no interest. At Justlease, a halal private lease contract is based on a contract with an end date. This has a fixed price with a built-in fee for the use of the car. Tom Dwars of Justlease explains that a contract based on Islamic principles is based on making an agreement. And trust between the parties that conclude this contract is the first starting point.

This will also not be deviated from. So if you unexpectedly want to deviate from the contract on a halal basis or even have to terminate it prematurely, you can talk to the other party and make a new agreement that satisfies both of you. In this way there is also no question of penalty interest. It is possible that the usage fee is calculated in a different way for the new appointment.

The same applies to late payment. In principle, this is not possible within a halal service. But should it happen, the lease company and the customer will consult with each other to find a good solution for both parties. Although: if it comes to the point that regular laws are violated, they will still apply.

In the case of Justlease, the regular terms and conditions were taken as a starting point. Actually, the most important thing is that the conditions have been viewed by Islamic scholars. This gives confidence that the agreements comply with Islamic regulations. The conditions have been reviewed by Islamic authorities and checked against specific Islamic legislation regarding financing. The trust that the leasing company and the customers have with each other is also important throughout the process.

Both before and during the term of the contract, dialogue is the starting point for good cooperation, and therefore the contract process. Although the halal private lease contract is specifically designed for Islamic customers, other customers can also use this form of contract. You are not more expensive or cheaper with it. A halal private lease contract is also registered with the BKR.