Buying a car from the car company via the company’s bank
Question

                I live in Germany.  Every car company has its own bank, Mercedes for example has a Mercedes bank, BMW has its own bank as well and so on. Selling in instalments happens via the company’s bank. What is the ruling on buying a car in instalments from such companies? Bear in mind that there is no third side in the selling process.
Praise be to Allah.Firstly: 
If the purchase is made 
    from the bank, then it is essential that the bank should own the car, or buy 
    it for itself first, then sell it to you by instalments. 
But if it does not own the 
    car, and does not buy it for itself first, rather its role is limited to 
    paying the company the price of the car on your behalf, then getting the 
    money back from you in instalments with something extra, this is not 
    permissible, because in fact they are lending you the price of the car, and 
    paying it on your behalf, on the basis that you will repay the loan with 
    interest, so it is a loan which brings a benefit, so it is riba. 
The fact that the bank 
    belongs to the company does not mean that it owns the cars that the company 
    owns. Hence we stipulated that the bank should take possession of the car 
    first, before selling it to you. 
For more information please 
    see the answer to question no. 20091 
    and 36410. 
Secondly: 
If the purchase is made 
    from the company with no involvement of the bank, there is nothing wrong 
    with that, even if the price of purchase by instalments is higher than the 
    price paid in cash, because the company is selling something that it owns.  
As for involving the bank 
    in this transaction, if it is only to make you pay the instalments through 
    the bank to the company, then there is nothing wrong with that. But if the 
    bank is to pay the full amount to the company then get it back from you in 
    instalments, then this is riba, as stated above. This form is common in 
    transactions with car companies, so you have to pay attention and beware. 
And Allaah knows best.