In a system where a vehicle is purchased using financing provided by a leasing company, there are essentially two transactions involved. First, the leasing company extends an interest-based loan to the individual, and second, the individual uses this loan to purchase the vehicle. Since the first transaction involves interest, it is not permissible. This is because the leasing company provides money on a deferred basis and stipulates repayment with an increase, which falls under both ribā al-faḍl and ribā al-nasīʾah.
In installment sales, the mere existence of a price difference between a cash price and a deferred price is not, in itself, impermissible. However, in this case, what is being sold is not a tangible asset but money. The deferred sale of the same currency with an increase is not permissible under Islamic law. Therefore, unless there exists a genuine state of necessity, purchasing a vehicle through this method is not appropriate.
By contrast, leasing agreements that are genuinely based on rental principles and that allow the vehicle, at the end of the lease term, either to be purchased at its market value at that time or returned, are permissible. In such arrangements, the individual rents the vehicle, and no interest-bearing debt is involved.
Conclusion:
Purchasing a vehicle through a leasing system that operates by providing an interest-based loan is not permissible. However, leasing models that are founded on a true rental contract and that offer an option to purchase at the end of the term are permissible from a religious standpoint.