Car financing can be halal depending on the specifics of the arrangement. If the bank or finance company buys the car, becomes its owner, and then sells it to you in installments for a higher price without charging interest, it is permissible. However, traditional interest-based loans offered by vehicle companies are haram and must be avoided.

And Allah knows best.

Sources:

• Qardus – Islamic Car Finance
• IslamQA – Buying a Car on Installments from a Bank
• IslamQA – Vehicle Financing