Is CAR (Avis Budget Group, Inc.) Halal or Haram?

Based on our AAOIFI-standard shariah screening, CAR is classified as Doubtful. It passed 3 of 4 compliance screens. Some scholars may permit investing with income purification, while others advise avoiding it. We recommend consulting a qualified Islamic scholar before investing in CAR.

Avis Budget Group, Inc. operates a massive global fleet of vehicles, providing car and truck rentals through well-known brands like Avis and Budget. The company serves both premium commercial and leisure travel segments, alongside a substantial truck rental business for local and one-way cargo needs. For Muslim investors using the AAOIFI methodology, Avis Budget Group currently holds a Doubtful status. Although the core business of vehicle leasing is perfectly halal, the stock fails the critical financial screening due to excessive leverage, meaning it cannot be considered a shariah-compliant investment at this time. The primary concern from an Islamic finance perspective is the company's massive debt load, with a debt-to-market cap ratio of 449.2%, vastly exceeding the strict 33% limit. Fortunately, its interest-bearing securities and interest income remain well within compliant boundaries at 7.5% and 0.00% respectively, showing that the core revenue is clean of riba. Because the vehicle rental industry is highly capital intensive, companies like Avis often rely on heavy debt financing to purchase and maintain their fleets. Halal investors should avoid this stock and look for alternatives until the company significantly restructures its balance sheet and reduces its reliance on interest-bearing debt. Avis Budget Group, Inc. operates in the Industrials sector under the Rental & Leasing Services industry and is headquartered in Parsippany, NJ, US. The company is led by CEO Brian J. Choi and employs approximately 17,000 people.

CAR was screened using AAOIFI-based shariah compliance criteria. Four tests are applied: (1) Business Activity — the company's core business must not derive primary income from haram (prohibited) activities such as alcohol, gambling, tobacco, or interest-based finance. (2) Debt-to-Market-Cap — total debt must not exceed 33% of market capitalization. (3) Interest Income — interest income must not exceed 5% of total revenue. (4) Cash & Securities — cash and interest-bearing securities must not exceed 33% of market cap. CAR passed 3 of these 4 screens.

CAR was last screened on 2026-04-27. Shariah compliance status can change as companies report new financial data, acquire new businesses, or shift revenue streams. We recommend checking back periodically for the most up-to-date screening results.