Kind: captions
Language: en
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But form.
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Alhamdulillah.
There is a concept of lease to own and
this is widely spread nowadays even in
the Muslim world unfortunately
and
basically it is
two parties.
One leases or rents a property or
a vehicle, which is the norm, or an
item,
and he pays
rent fees regularly
on timely basis.
And after the time has elapsed,
he possesses
the item, which is usually the car.
And this transaction
is widely spread, but it involves two
contracts,
two sales in one sale.
And if you go and
genuinely ask the parties involved,
the person renting would say, "No, I'm
not leasing. I'm actually buying."
And the company, the car company says
that I'm interested in selling. I don't
want a lease. I'm not a rental car
agency.
So why are they doing this?
This is being done
so that the car company, the agency
ensures
the maximum profit possible
with the minimal risk possible.
20 years ago,
people would go to the car dealer,
see a car,
buy the car on installments because they
can't afford it cash.
And the car dealer takes
a particular percentage
as a risk factor
which is fixed. It it's not variable.
depending on time. No, you want to buy
this car, it's 100,000 real cash. You
don't have the cash over 5 years time,
you pay us 120,000 real, not a single
penny extra if you're defaulting or late
or no penalty late penalty fees. None.
It's a win-win.
Unfortunately,
due to the fact that some people may buy
the car, give the collaterals
and sell it immediately and never show
up.
And the car dealer has to go and pursue
with the authorities, try to catch this
crook. So there was a lot of hassle
behind this. So they came with this
ingenious idea
of
asking the people to rent to lease.
If you defaulted
will repossess the car.
All what you've paid is gone down the
drain. You were leasing
and
we will still ask you to pay penalty for
your delay in payment. We will either
reuse the car, sell it, and we've we
would have done a fortune out of that.
And Islam prohibits such ambiguity and
transgression.
The Islamic
FK council when they convened
they said that such a transaction is not
permissible
and there has to be two separate
contracts from one another not related.
So if you want to lease here's the
contract for leasing. It's for five
years.
What happens after five years? Nothing.
The contract is over. We repossess the
car. You go your way. I go my way. But
if you're interested,
we can have a second
contract
that we would formulate and write after
the 5 years are over.
We could assess how much the car is
worth. And if you wish to buy it, we
make this selling contract auding
on the price
of the market. Or we could
say say
that after the 5 years
of leasing is done and over, we give you
the car as a gift
for paying on time.
This is fine providing
providing that there is no cheating,
no ambiguity.
Where is the ambiguity?
The ambiguity is when you say that I am
leasing you for 5 years. Are you
actually leasing? What do you mean? If I
go to budget or to hertz to rent a car,
I rent the car for a month for a year
and the car is not under my name.
It is under the owner's name, which
means if the car breaks down,
immediately the car rental shop would
substitute me with a substitute car
because I'm paying the rent. They'll
take their first car, fix it, pay the
damages, and return it back. or I would
continue with the second car.
In the lease to own transactions, the
companies say we have nothing to do with
the maintenance. It's your problem. I'm
not talking about
the things that are usual such as tires,
the battery. These are usual. I use the
car for a year, the battery goes dead. I
pay for that. the consumption of the
tires. I've used it. I depleted it. I
can pay for that. But I'm talking about
engine fail failure. I'm talking about
serious stuff.
Besides, who pays the insurance? This is
also something that has to be discussed.
Why do I pay the insurance if the
beneficiary is the car dealer?
So, I am interested in buying the car.
I've been paying insurance for 5 years
and paying my installments every single
month.
I'm been punctual.
Yet couple of days before the 5 years
elapsed,
the car was in front of my home. A big
18-wheeler
rampaged it and flattened it to the
earth. Total it.
The insurance company pays for the
damages or for a new car. The car dealer
says, "Okay, no, no harm is done." The
insurance company paid for the money.
Alhamdulillah.
Okay, what about my car? I need a car.
Said, "Okay, we'll give you another car,
but you have to lease it once again from
scratch." Why? I paid 5 years for the
car I had. Yeah, but it's totaled. Okay.
What about the five years I paid? You
were paying rent.
Come on. You guys know and I know that I
was intending to buy it. Well, the
contract says otherwise.
All of this is to fool the customer,
to milk the customer
so that the car dealer would not lose a
penny while all the loss is on me as a
buyer. And this is not fair. It's
unislamic. I've seen in some car dealers
the contract
and they say that
verbally each year you have to pay
12,000
real
1,000 real a month for the car you're
driving. That's mighty fine.
12 by five that's 60,000.
Okay. the cars originally is cost as a h
100,000 maybe. So in five years I'm
paying 60,000 and then they'll evaluate
it at the end of the five years and I'll
pay the difference and I can buy it if I
want because this is one of the three
options.
When you come to the contract it says
the first year you have to pay every
month 4,500 real.
I thought you said 1,000.
The
agent or the seller says, "Yeah, yeah,
it's 1,000." So, why are you writing
that I have to pay 4,500? Said, "Ah,
because if you defaulted after 2 months
and you said, "I don't want the lease
anymore." Then by contract, you're
obliged to pay us 9,000 real
for two months, not 2,000.
so that we would cover our losses for
selling you a brand new car.
So they say something while writing is
something different and all of this kind
of ambiguity unfortunately is prevailing
and the customer wants a car desperately
and he doesn't mind cutting corners or
bending the rules while Islam protects
him and the buyer and the seller and
everyone else in the community.
to
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Z.
Foreign
speech. Foreign speech. Foreign speech.
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