Buying the Latest Model Car
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Question: What is your opinion regarding the one who buys a new car every time the latest model appears (on the market), even if it is beyond his financial means?

Response: I am of the opinion that this is not sensible, that you buy a car beyond your means in order to boast to others or to remain abreast of the latest cars every time a new model appears (on the market). (So) you go and buy it and sell your previous (car) at a loss; No doubt this is a mistake, foolishness! If you are in need of a car, then buy one according to your means. It has been said:

Extend your stride according to your covering (i.e. how much you are covered by clothing)

...this is because if you extended it beyond your covering then you will catch a cold!

So we say to our brothers, compose yourselves; Don`t buy cars except those which are necessary, and don`t buy cars except those which are within your means.

As for monthly payments (hire purchase), then no doubt they are regarded as a loan.

Shaykh Ibn `Uthaymeen
I`laam al-Mu`aasireen bi-Fataawa Ibn `Uthaymeen - Page 401