Halal Cars

Halal Cars: Sharia-compliant car finance in the UK

Halal Cars is a British company specialising in interest-free car finance in accordance with Islamic principles. The company presents itself as the only Sharia-compliant car finance firm in the UK, and states that it obtained this certification following an audit and verification process carried out by ICRIE and AAOIFI, completed in August 2022.

The company states that its activity is aimed at the Muslim community in the UK, although it serves anyone regardless of background. Its team has over 25 years of experience in the motor trade.

Three-step finance process

The company's described method of working is structured in three phases. In the first, the interested party completes an application form to check whether they meet the requirements for 0% finance. The company stresses that there is no obligation to continue with the process. In the second phase, the customer can choose any vehicle from available stock; if the desired model is not found, Halal Cars undertakes to source it from its suppliers. In the third, once the customer is happy with the vehicle, the company prepares it and delivers it for collection or direct delivery.

Contract conditions and flexibility

The finance plans offered by the company include the possibility of making additional payments during the term of the agreement, whether through higher monthly contributions or lump sums, without incurring any fees. The customer can also settle the finance at any time during the term by contacting a company manager or the lender directly.

Halal Cars accepts used vehicles as part exchange, and offers the possibility of appraising them over a phone call. The appraisal value contributes to reducing the outstanding finance balance.

Requirements, timescales and data protection

The company indicates that, in many cases, people with a poor credit history can still obtain finance, although conditions may vary depending on circumstances and are explained on a case-by-case basis. An application involves a credit check by associated lenders, which is shown on the applicant's credit profile; a quote, however, does not affect that profile.

Once the application is submitted, an adviser contacts the applicant within 24 hours. The company states that it strictly complies with data protection regulations: information is used solely to produce finance plans and is kept confidential between the company and the finance provider. If the latter needs to contact the customer's employer or bank, prior authorisation is requested.

Certification and audit

According to the company's information, the certification process included a review of investment means and the origin of funds, an evaluation of the finance model offered to customers and an audit of the entire journey, from application to vehicle delivery, as well as the agreements with associated lenders. The company notes that annual audits and ongoing staff training are carried out to maintain compliance with Sharia principles.

Regulated activity

Halal Cars is authorised and regulated by the Financial Conduct Authority (FCA) with reference number FRN 1008021. The company acts as a credit broker, not a lender, and works with a selection of finance providers. Finance is subject to the applicant's status and income and to acceptance of the terms and conditions. The company indicates that it may receive different levels of commission from each provider for the introduction.