Al Baraka Bank Al Baraka Vehicle Finance

Al Baraka finances vehicles through three published structures. Fixed Instalment Murabaha: 10% deposit, rate fixed for the full term of up to 72 months, new or used vehicles up to 6 years old and 120,000km from recognised dealers, with a residual/balloon option up to 30% on new or demo vehicles. Variable Instalment Ijarah lease: up to 84 months on new/demo passenger and light commercial vehicles (or 72 months with a 30% residual), and up to 60 months on used vehicles not older than 4 years with under 80,000km. Fixed Instalment Ijarah: new or demo vehicles up to 6 months old and 10,000km, up to 60 months with a 10% deposit and rate fixed for the duration. No monthly admin fees, no early settlement penalties, and an annual lump-sum payment option on Ijarah contracts. Private sales are not financed under any structure.

Al Baraka's vehicle desk gives you the choice conventional finance cannot: a Murabaha whose instalment is mathematically incapable of rising for up to 72 months, or an Ijarah lease that flexes like prime-linked finance while the bank genuinely owns the asset. The published rulebook on vehicle age, mileage, deposits and balloons is more detailed than either FNB's or Absa's public pages, and the online calculator produces a full cost breakdown including the initiation fee before you commit. The dealer-only restriction is the notable limitation against FNB's window, which does finance private sales. For fixed-payment certainty at a pure Islamic bank, this is the reference product in South Africa.