Buying a car from an agent who deals with banks
Question

                I want to buy a car in instalments from an approved agent, which is “Renault”. Renault announced a month ago that it sells its cars in instalments with a condition of paying 20% to 30% as an initial instalment, and the rest to be paid in instalments in five years. This happens after the company receives many documents such as the buyer’s proof of salary and his birth certificate, etc. after this the company gives these documents to its approves financial agent which is  “Renault car loans”.  

After the documents have been approved by the bank. The bank accepts to pay the value of the car to the agent. Then the agent sells the car to the client for 9.4% higher price than if the buyer will buy it cash for example. So if the car ‘s’ will be sold cash for 1.000.000, the same car will be sold for 1.094.000 in instalments.

 Bear in mind that I pay the agent monthly directly into its account, not into its bank’s account. So the client does not at all deal with the bank.  The client deals only with the agent. What is the ruling on such a transaction?.
Praise be to Allah.Firstly: 
It is permissible to 
    purchase by instalments, even if it is for a price that is higher than 
    buying with cash. Please see the answer to question no.
    13973. 
For it to be permissible to 
    purchase by instalments, it is essential that there be no stipulation of a 
    penalty in the event of delayed payment, because stipulating this penalty is 
    riba, which is haraam, and it is not permissible for anyone to subscribe to 
    such a contract, even if he is certain that he will be able to pay it off, 
    because it is approval of a riba-based contract and committing oneself to 
    it, and that is haraam. The Islamic Fiqh Council has issued a statement that 
    penalties for late payment imposed by banks when a customer is late in 
    making a payment are haraam. 
It says in a statement of 
    the Fiqh Council no. 133(7/14), issued during its fourteenth session in 
    Doha: If the purchaser delays payment after the set time, it is not 
    permissible to make him pay anything in addition to the loan by prior 
    stipulation, or otherwise, because that is riba which is haraam. End quote. 
The seller may ask for a 
    guarantor, or he may take something as collateral to secure his rights, and 
    it is permissible to make the item being purchased the collateral in 
    question, so that the buyer will not be able to sell it before he has paid 
    off what he owes. 
Secondly: 
If the transaction is done 
    in the manner that you describe, and you pay something up front and the rest 
    is to be paid in instalments, and you deal with the appointed agent and not 
    with his bank, then there is nothing wrong with it. But if you know that 
    this agent will give the money and post-dated cheques to the bank, and will 
    take less than they are worth, then this is a haraam riba-based transaction, 
    between him and the bank, but you are not a party to it. But it is better 
    for you not to deal with this agent who deals with riba. 
And Allaah knows best.