What is the Shariah concept applicable?
Auto Service Financing is based on the Shariah concept of Commodity Murabahah via Tawarruq, which consist of two separate sale and purchase contracts:
- Sale of a Shariah-compliant commodity by Direct Lending to you (as buyer) on a deferred basis (i.e. instalment), where the sale price of the commodity is the acquisition cost plus agreed profit margin (Murabahah); and
- Sale of the same commodity by you (as seller) to a third party on a cash and spot basis (for the purpose of obtaining the funds to service your car with MyAssist).