Splend.com.au Review

Based on looking at the website, Splend.com.au appears to offer car ownership solutions specifically for rideshare drivers in Australia, aiming to simplify the process and reduce total ownership costs. However, a significant concern arises from their “Flexi Own Plans” and pricing structures, which explicitly mention “0% APR Equivalent” and comparisons to traditional car payments based on “APR of 12% over a 5-year term, paid monthly.” This directly indicates an involvement with interest-based financial transactions, which are considered usury (riba) in Islamic jurisprudence and are strictly forbidden due to their exploitative nature and economic instability. Therefore, from an Islamic ethical standpoint, Splend.com.au’s offerings are not permissible.

Overall Review Summary:

• Purpose: Provides car ownership and rental services primarily for rideshare drivers in Australia.
• Key Offerings: “Flexi Own Plans” for new and pre-owned cars, including registration, insurance, maintenance, and servicing in one weekly payment. Also offers used cars for sale and Uber Car rental.
• Ethical Consideration (Islamic): Not permissible. The involvement of “APR Equivalent” and comparisons to interest-based car payments clearly indicates the presence of riba (interest), which is prohibited in Islam.
• Transparency: The website is relatively transparent about its pricing structure and what’s included, though the underlying financial mechanism involves interest.
• Convenience: Aims to provide a convenient, all-inclusive solution for rideshare drivers.
• Recommendation: Not recommended due to non-compliance with Islamic financial principles.

While Splend.com.au attempts to present a convenient and seemingly affordable pathway to car ownership for rideshare drivers, the foundational financial model appears to involve interest. This is a critical point for any Muslim seeking to engage in transactions that are ethically sound according to Islamic principles. The concept of “0% APR Equivalent” when juxtaposed with “APR of 12%” comparisons suggests a financial arrangement that, while perhaps structured differently, ultimately involves a return on capital that functions similarly to interest. In Islam, any financial transaction that involves a predetermined excess or increment on a loan or debt is considered riba and is strictly prohibited. This prohibition is rooted in principles of fairness, justice, and the prevention of exploitation. Therefore, for those seeking to align their financial dealings with Islamic teachings, Splend.com.au, despite its apparent convenience for “splend.com.au cars” and “splend jax com au” searches, would not be a suitable option.

Best Ethical Alternatives for Vehicle Acquisition:

When it comes to acquiring a vehicle in a manner that aligns with Islamic financial principles, the focus shifts to models that avoid interest (riba). These alternatives generally involve partnerships, direct purchase, or specific Islamic financing structures.

• Direct Purchase (Cash):

  

  • Key Features: The most straightforward and undeniably permissible method. You pay the full amount upfront for the vehicle.
  • Price: Varies significantly based on vehicle make, model, age, and condition.
  • Pros: Absolutely no interest involved, immediate ownership, no ongoing payments except for registration, insurance, and maintenance.
  • Cons: Requires significant upfront capital, not always feasible for everyone.

• Murabahah (Cost-Plus Financing):

  • Key Features: An Islamic finance model where the financier purchases the vehicle and then sells it to the client at a pre-agreed mark-up, payable in instalments. The profit margin is fixed and known upfront.
  • Price: The total price, including the financier’s profit, is agreed upon at the outset.
  • Pros: Halal (permissible) as it involves a legitimate sale, not a loan with interest; clear terms and conditions.
  • Cons: May sometimes result in a higher total cost than a conventional interest-based loan (though this isn’t always the case), fewer providers compared to conventional finance.

• Ijarah (Leasing with Option to Purchase):

  • Key Features: An Islamic leasing arrangement where the financier owns the vehicle and leases it to the client for a specific period. At the end of the term, the client has the option to purchase the vehicle. The monthly payments are for the use of the asset, not interest on a loan.
  • Price: Monthly lease payments, with a final purchase price if the option is exercised.
  • Pros: Halal; flexibility similar to conventional leasing; often includes maintenance or servicing as part of the lease.
  • Cons: The client doesn’t own the vehicle until the lease term is complete and purchase option is exercised; total cost might be comparable to other financing options.

• Takaful (Islamic Insurance):

  • Key Features: While not a car acquisition method, Takaful is the ethical insurance alternative. It operates on principles of mutual cooperation, where participants contribute to a common fund to cover potential losses. It avoids elements of uncertainty and interest found in conventional insurance.
  • Price: Regular contributions to the Takaful fund.
  • Pros: Halal; promotes mutual assistance; surplus funds can be returned to participants.
  • Cons: Limited availability in some regions compared to conventional insurance.

• Community Funds/Interest-Free Loans:

  • Key Features: Some community or religious organisations offer interest-free loans (Qard Hasan) to their members for essential purchases like vehicles. These are typically paid back over time without any additional charge.
  • Price: Repayment of the principal amount only.
  • Pros: Purely interest-free; promotes solidarity within the community.
  • Cons: Often limited in availability and amount; may have specific eligibility criteria.

• Saving Up for a Deposit/Purchase:

  • Key Features: A disciplined approach where you save a significant portion or the entire amount needed for a car purchase. This avoids any form of debt.
  • Price: Your own savings.
  • Pros: Complete financial independence; no debt or interest payments; psychological peace of mind.
  • Cons: Requires patience and strong financial discipline; may take time to accumulate sufficient funds.

• Partnership (Musharakah/Diminishing Musharakah):

  • Key Features: In a Diminishing Musharakah, a financier and client jointly purchase an asset (e.g., a car). The client then buys out the financier’s share over time, typically through monthly payments, until the client owns the entire asset.
  • Price: Monthly payments that reduce the financier’s share.
  • Pros: Halal and ethically sound; shared ownership and risk initially.
  • Cons: More complex structure than Murabahah; fewer providers in the market.

Find detailed reviews on Trustpilot, Reddit, and BBB.org, for software products you can also check Producthunt.

IMPORTANT: We have not personally tested this company’s services. This review is based solely on information provided by the company on their website. For independent, verified user experiences, please refer to trusted sources such as Trustpilot, Reddit, and BBB.org.

Splend.com.au Review & First Look

Splend.com.au presents itself as a dedicated platform for rideshare drivers in Australia, aiming to simplify vehicle acquisition and ownership. The website’s design is clean, professional, and relatively easy to navigate, with clear calls to action and prominent displays of their vehicle offerings. They boast an all-inclusive package, covering registration, comprehensive rideshare damage and loss cover, maintenance, and servicing, bundled into one weekly payment. This integrated approach is designed to attract drivers seeking convenience and predictable costs for their “splend.com.au cars.”

Initial Impressions of Splend.com.au

Upon first glance, Splend.com.au appears to offer a compelling solution for rideshare drivers. The emphasis on simplifying vehicle ownership, reducing stress, and potentially maximising earnings aligns with the practical needs of those in the gig economy. The website highlights key benefits such as “unbeatable value” and “lowest total ownership cost,” which are strong attractors for individuals looking to manage their finances effectively. They feature a range of vehicles, including electric and hybrid options, suggesting a contemporary and environmentally conscious approach. The inclusion of testimonials from “Uber Driver” users across various Australian cities like Gold Coast, Melbourne, Brisbane, Perth, Sydney, Adelaide, and Canberra lends an air of credibility and user satisfaction.

Understanding the “Flexi Own” Model

The core of Splend.com.au’s offering revolves around its “Flexi Own Plans.” These plans are marketed as a smarter way to own for rideshare, providing an alternative to traditional car purchases or rentals. The structure is designed to be flexible, allowing drivers to choose from various minimum terms and paths to ownership, ostensibly without requiring an extensive credit history upfront. The website claims to “skip the need for an extensive credit history,” which could be appealing to many. However, a deeper look into the financial specifics, particularly the comparison to “APR Equivalent” and traditional loans, immediately raises red flags for those adhering to Islamic financial principles. The explicit mention of “0% APR Equivalent” juxtaposed with a “DIY comparison based on APR of 12% over a 5-year term” strongly implies that the underlying model, despite its unique branding, is inherently tied to interest-based financing, which is impermissible.

Ethical Concerns with Splend.com.au’s Financial Model

The primary ethical concern with Splend.com.au, particularly from an Islamic perspective, stems directly from its financial model. The term “APR Equivalent” and the direct comparison to conventional loans with an Annual Percentage Rate (APR) indicate that the ‘Flexi Own’ plans, regardless of their bundled services, operate on principles that closely resemble or directly involve interest (riba). In Islam, riba is unequivocally prohibited due to its exploitative nature and its potential to create economic instability and inequality.

The Prohibition of Riba (Interest) in Islam

Riba, in essence, refers to any unjustifiable increase or excess in exchange of specific homogenous commodities or any increase in lending money. It is widely considered one of the major sins in Islam. The Quran and Sunnah (teachings and practices of Prophet Muhammad, peace be upon him) contain clear injunctions against engaging in interest-based transactions. This prohibition is not merely a moral guideline but a fundamental principle of Islamic finance, aiming to foster economic justice, encourage real economic activity, and discourage speculative or exploitative practices. When a financial transaction involves an ‘APR Equivalent,’ it indicates a predetermined return on capital that aligns with the definition of interest, making it impermissible. This directly impacts any consideration of Splend.com.au’s services for a Muslim individual.

Why “0% APR Equivalent” is Still a Concern

Even when Splend.com.au advertises “0% APR Equivalent” in conjunction with a comparison to a 12% APR, it is still a significant concern. The very act of framing their offering within the context of APR suggests that the financial mechanism is rooted in interest-bearing concepts. In many cases, “0% APR” deals in conventional finance are simply structured such that the interest is front-loaded, embedded in the price, or recovered through other fees. The comparison to a 12% APR further solidifies this, as it presents their model as an alternative within the framework of interest, rather than a distinct, interest-free model. For a transaction to be truly halal, it must completely decouple itself from interest-based calculations and instead rely on permissible contracts like Murabahah (cost-plus sale), Ijarah (leasing), or Musharakah (partnership), where profit is generated through legitimate trade or shared risk. The bundling of services like registration, insurance, and maintenance into a “weekly payment” alongside an “APR Equivalent” makes it highly probable that the profit component includes an element derived from the financing itself, which would be riba.

Impact on Ethical Decision-Making

For a Muslim consumer or business, engaging in transactions that involve riba carries significant spiritual and ethical implications. The pursuit of halal earnings and financial dealings is paramount. Therefore, even if a service appears convenient or economically advantageous on the surface, its underlying financial structure must be scrutinised. Splend.com.au’s use of “APR Equivalent” terminology signals a fundamental incompatibility with Islamic financial principles, making it an unsuitable option for those seeking ethically compliant vehicle solutions for rideshare or personal use.

Splend.com.au Features (Not Permissible)

While Splend.com.au offers a suite of features designed to make car ownership seamless for rideshare drivers, it’s important to acknowledge that the underlying financial model renders these features problematic from an Islamic ethical standpoint. We will outline them for comprehensive understanding, but reiterate the impermissibility due to riba. Kuvings.com.au Review

All-Inclusive Weekly Payment Structure

Splend.com.au’s standout feature is its “all-inclusive weekly payment.” This payment supposedly bundles everything a rideshare driver needs: vehicle acquisition costs, registration, comprehensive rideshare damage and loss cover, maintenance, and servicing. The aim is to provide a single, predictable weekly outlay, removing the complexities and hidden costs often associated with traditional car ownership. The website highlights that “it’s unbeatable value in one weekly payment.”

• Convenience: Simplifies financial management for drivers, as all major costs are covered in one regular payment.
• Predictability: Helps drivers budget more effectively by knowing their fixed weekly vehicle expense.
• Reduced Stress: Aims to eliminate unexpected large bills for maintenance or insurance renewals.

Comprehensive Rideshare Damage and Loss Cover

A crucial element included in Splend’s weekly payment is comprehensive rideshare damage and loss cover. This type of insurance is specifically tailored for vehicles used in rideshare services, which often fall outside the scope of standard personal car insurance policies. This feature addresses a significant pain point for rideshare drivers, ensuring they are adequately protected while on the job.

• Specialised Coverage: Provides peace of mind knowing the vehicle is covered for both personal and rideshare use.
• Integrated Solution: Removes the need for drivers to source and manage a separate, often complex, rideshare insurance policy.
• Claim Management: Implies Splend assists with the management of claims, further easing the burden on drivers.

Maintenance and Servicing Included

Splend.com.au also incorporates vehicle maintenance and servicing into its weekly payment. This is a considerable advantage for rideshare drivers, whose vehicles typically accrue high mileage and require regular upkeep. Including these costs ensures the vehicle remains in optimal condition, minimising downtime and maximising earning potential.

• Vehicle Reliability: Regular servicing helps prevent breakdowns and ensures the vehicle is safe and reliable for commercial use.
• Cost Control: Drivers don’t face unexpected large repair bills, as these are factored into their weekly payment.
• Operational Efficiency: Well-maintained vehicles contribute to higher passenger satisfaction and better reviews.

Vehicle Selection and Modern Options

The platform offers a range of vehicles, including popular models like the Toyota RAV4 Hybrid GX, as well as new electric vehicles (EVs) like the BMW i4 eDrive35, Hyundai Santa Fe Hybrid, and the Chery Omoda E5 EX. This diverse selection caters to different driver needs and preferences, with a clear push towards fuel-efficient and environmentally friendly options.

• Variety: Provides choices for drivers based on their preferences for vehicle size, type, and fuel economy.
• EV Focus: Encourages drivers to adopt electric vehicles, potentially leading to lower running costs (fuel/charging) and access to green subsidies.
• New Car Flexi Own & Pre-owned Flexi Own Plans: Offers both new and used vehicles under their flexible ownership model.

Support for New Rideshare Drivers

Splend positions itself as a supportive partner for both seasoned professionals and new rideshare drivers. They claim to assist with the entire process of getting set up with Uber, including vehicle selection, ownership, registration, and operation. This hand-holding approach is valuable for individuals new to the rideshare industry.

• Guidance: Provides a structured pathway for new drivers to enter the rideshare economy.
• Uber Integration: Specifically mentions assistance with signing up to Uber, streamlining the onboarding process.
• Resources: Offers a blog and FAQs tailored to new drivers, providing valuable information and tips.

Splend.com.au Cons (Due to Impermissibility)

Given the ethical considerations surrounding Splend.com.au’s financial model, primarily its involvement with interest (riba), the entire proposition carries significant cons for a Muslim individual. While a conventional review might list pros like convenience and bundled services, these are fundamentally overshadowed by the impermissibility of the core financial transaction. Therefore, we will focus solely on the negative aspects from an Islamic ethical perspective.

Direct Involvement with Riba (Interest)

The most significant and overriding ‘con’ of Splend.com.au is its apparent engagement in interest-based transactions. The website’s explicit mention of “0% APR Equivalent” and its comparison to conventional loans with “APR of 12%” indicates that the financial structure, regardless of its marketing, is rooted in riba. For Muslims, engaging in riba is a grave sin and is strictly prohibited. This prohibition is not merely a preference but a fundamental tenet of Islamic finance, designed to prevent exploitation and ensure economic justice. Any perceived convenience or cost-saving from Splend’s offerings becomes null and void when weighed against this fundamental Islamic prohibition.

Lack of Transparency on Islamic Compliance

Splend.com.au makes no claims or provides any information regarding compliance with Islamic financial principles. This absence of transparency means that any Muslim considering their services would immediately find them problematic. Unlike dedicated Islamic financial institutions that structure their products (e.g., Murabahah, Ijarah) to be compliant, Splend’s model is clearly derived from conventional finance, where interest is an inherent component. This lack of an ethical, interest-free alternative within their offerings is a significant drawback for a large segment of the Australian population seeking halal financial solutions.

Spiritual and Ethical Burden

For a Muslim, engaging in a transaction that involves riba carries a profound spiritual and ethical burden. It goes against the direct commands of Allah and His Messenger, peace be upon him. Even if the service appears convenient or offers immediate benefits, the long-term spiritual consequence of engaging in prohibited transactions outweighs any worldly gain. This ethical compromise is a major ‘con’ that extends beyond mere financial terms, impacting one’s faith and conscience. Greatwaterfilters.com.au Review

Potential for Hidden Fees within “All-Inclusive” Payments

While Splend advertises an “all-inclusive” weekly payment, the complexity of bundling various services (vehicle, insurance, maintenance) with an “APR Equivalent” structure can obscure the true cost and the profit component derived from financing. This lack of granular breakdown, from an Islamic perspective, makes it difficult to ascertain if any elements within the payment are indirectly contributing to riba or involve excessive, undisclosed charges. A truly ethical transaction requires utmost clarity on all components of cost and profit.

Limited Alternatives for Rideshare Drivers within Splend’s Model

Since Splend.com.au’s core business model for vehicle acquisition appears to be interest-based, it offers no permissible alternative for rideshare drivers seeking a halal way to get a vehicle. This means Muslim drivers would need to look entirely outside Splend’s ecosystem, limiting their options if they were initially drawn to the convenience and bundled services advertised by the platform. The platform doesn’t provide a Takaful (Islamic insurance) option, nor does it offer Murabahah or Ijarah contracts, which are the permissible structures for vehicle financing in Islam.

Reinforces Conventional Financial Models

By using “APR Equivalent” and comparing itself to traditional loans, Splend.com.au inadvertently reinforces the conventional, interest-based financial system. For Muslims who strive to promote and participate in ethical, Islamic finance, engaging with such platforms, even if seemingly advantageous, can be seen as contributing to a system that contradicts their core beliefs. This is a broader societal ‘con’ from an Islamic perspective, as it does not advance the cause of ethical financial alternatives.

Splend.com.au Alternatives

Since Splend.com.au’s financial model appears to involve interest (riba), making it impermissible in Islam, it’s crucial to explore genuine alternatives for rideshare drivers or anyone needing a vehicle that align with Islamic financial principles. These alternatives focus on ethical transactions, avoiding debt with interest, and fostering economic justice.

Ethical Vehicle Acquisition Methods

• Direct Cash Purchase: This is the most straightforward and universally accepted method in Islam. Purchasing a vehicle outright with cash avoids any form of debt or interest. For rideshare drivers, this might involve disciplined saving or pooling resources.

  • Pros: Absolutely no riba, immediate full ownership, no ongoing financial obligations for the vehicle itself.
  • Cons: Requires significant upfront capital, which may not be feasible for all drivers.

• Murabahah (Cost-Plus Sale): This is a popular Islamic financing method. An Islamic financial institution (IFI) purchases the vehicle from the dealer and then sells it to the driver at a pre-agreed mark-up. The driver pays the IFI in instalments over a fixed period. The key is that the profit is from a legitimate sale, not from lending money.

  • Pros: Halal and ethically sound, fixed payments, clear total cost upfront.
  • Cons: Requires an Islamic financial institution, which might have fewer branches or online presence compared to conventional banks. Availability might be limited in certain regions of Australia.

• Ijarah (Leasing with Option to Purchase): In Ijarah, the IFI owns the vehicle and leases it to the driver for a specified term. The driver pays rental fees for the use of the vehicle. At the end of the lease, the driver has the option to purchase the vehicle. The payments are for the utility of the asset, not interest on a loan.

  • Pros: Halal, flexible terms, often includes maintenance, eventual ownership possible.
  • Cons: The driver doesn’t own the vehicle until the lease term is complete and purchase option is exercised.

• Diminishing Musharakah (Partnership): This involves a joint ownership structure between the driver and an IFI. The IFI and the driver jointly purchase the vehicle. The driver then progressively buys out the IFI’s share over time through regular payments, gradually increasing their ownership stake until they own the entire vehicle.

  • Pros: Halal, promotes shared risk and ownership.
  • Cons: Can be more complex than Murabahah, fewer IFIs offer this specific product for vehicles.

Ethical Insurance Alternatives

• Takaful (Islamic Insurance): As rideshare drivers require comprehensive cover, Takaful is the ethical alternative to conventional insurance. It’s based on mutual cooperation, where participants contribute to a common fund. This fund is used to compensate members who suffer losses, and any surplus is often distributed back to participants. It avoids elements of interest, uncertainty (gharar), and gambling (maysir) found in conventional insurance.
  • Pros: Halal, promotes mutual aid, avoids prohibited elements.
  • Cons: Limited availability in the Australian market compared to conventional insurers. Requires research to find providers.

Practical Steps for Rideshare Drivers

1. Seek Islamic Financial Institutions: Research and identify any licensed Islamic banks or financial institutions operating in Australia that offer Murabahah, Ijarah, or Diminishing Musharakah for vehicle financing. Examples might be limited but worth exploring.
2. Community-Based Solutions: Explore local Muslim community co-operatives or charitable funds that might offer interest-free loans (Qard Hasan) for essential purchases, including vehicles. These are typically smaller scale but operate on strong ethical principles.
3. Rentals for Short-Term Needs (with ethical considerations): If immediate vehicle access is needed, conventional car rentals can be used for short periods, provided the rental agreement itself does not involve interest or impermissible clauses. This can bridge the gap while saving for a direct purchase or arranging halal financing.
4. Save Diligently: For those who prefer to avoid all forms of external financing, disciplined saving towards a full cash purchase is the ideal. This ensures complete financial independence and adherence to Islamic principles.
5. Ethical Investment: Consider investing in halal funds or ethical businesses to grow capital for a future vehicle purchase. This would involve ensuring the investments themselves are Shariah-compliant.

By focusing on these alternatives, rideshare drivers can ensure their professional operations align with their religious and ethical convictions, avoiding the impermissibility of interest-based transactions. Brandhousedirect.com.au Review

How to Cancel Splend.com.au Subscription (Not Applicable/Ethical Viewpoint)

The concept of “cancelling a subscription” with Splend.com.au, in the traditional sense, might not directly apply as their “Flexi Own Plans” are structured more like vehicle financing or long-term leasing agreements rather than a month-to-month subscription service. However, from an ethical standpoint, if one has unfortunately entered into an agreement with Splend.com.au that involves interest (riba), the primary ethical concern shifts to minimising the impact of such a forbidden transaction.

Understanding the Agreement Termination

Based on the information provided on their homepage, Splend.com.au outlines “minimum terms” for their “Flexi Own” plans. This suggests that cancelling an agreement might involve specific contractual obligations, early termination fees, or processes similar to breaking a car lease or financing agreement. These details are typically outlined in the full terms and conditions provided at the point of signing the agreement.

• Contractual Review: The first step for anyone wishing to terminate their arrangement with Splend.com.au would be to meticulously review the specific contract they signed. This document would detail the conditions for early termination, any associated penalties, and the exact procedure for ending the agreement.
• Contacting Splend Directly: The most direct way to understand the cancellation process is to contact Splend.com.au’s customer service. Their website lists a phone number (1800-775-363) and an “Enquire now” option, which would be the channels to initiate this conversation. They should be able to provide clear instructions on how to proceed.
• Early Termination Fees: It is highly probable that early termination of such agreements would incur fees. These fees are typically designed to compensate the provider for lost future payments or the administrative costs of ending the contract prematurely. Understanding these potential costs is crucial before deciding to cancel.
• Vehicle Return/Purchase Option: Depending on the specific “Flexi Own” plan, the cancellation process might involve returning the vehicle or, if there’s an option, purchasing it outright to fully terminate the agreement. The financial implications of either choice would need careful consideration.

Ethical Imperative to Exit Riba-Based Contracts

For a Muslim who has inadvertently entered into a riba-based contract with Splend.com.au, the ethical imperative is to exit such a transaction as soon as practically and financially feasible, minimising any further involvement with interest.

• Seeking Forgiveness: The first step is always to seek Allah’s forgiveness for engaging in a prohibited transaction, even if done unknowingly or out of necessity.
• Minimising Harm: While it might not be possible to completely undo the past, one must strive to minimise the ongoing harm by terminating the impermissible contract.
• Financial Planning for Exit: This might involve:
  • Saving to Pay Off: Accumulating funds to pay off any outstanding balance, thereby ending the interest accumulation.
  • Exploring Halal Alternatives: Simultaneously looking for Shariah-compliant financing options for a replacement vehicle (e.g., Murabahah or Ijarah) to avoid falling into a similar situation.
  • Negotiating with Splend: Attempting to negotiate a termination that minimises penalties, explaining the ethical dilemma (though Splend is not obligated to comply with religious reasons).
• Learning from Experience: This situation serves as a critical lesson to thoroughly vet all financial agreements for Shariah compliance before signing.

While the “How to Cancel Splend.com.au Subscription” question is framed conventionally, for a Muslim, it carries a profound ethical dimension of extricating oneself from a forbidden transaction. The focus should be on practical steps to terminate the current agreement while ensuring future financial dealings adhere strictly to Islamic principles.

Splend.com.au Pricing (Underlying Impermissibility)

Splend.com.au clearly outlines its pricing structure around a weekly payment model, aiming to provide an “all-inclusive” solution for rideshare drivers. While the presentation appears straightforward, it’s essential to reiterate that the underlying financial mechanism, particularly the mention of “APR Equivalent” and comparisons to interest-bearing loans, renders these pricing models problematic from an Islamic ethical perspective due to their involvement with riba (interest).

The “All-Inclusive” Weekly Payment

Splend.com.au advertises a fixed weekly payment that covers the vehicle, registration, comprehensive rideshare damage and loss cover, maintenance, and servicing. Examples shown on the website include vehicles like the Mercedes-EQB 250+ Electric starting “From $559 p/w all inclusive” and the Mercedes-Benz EQV 300 Electric starting “From $549 p/w all inclusive.” There’s also a lower option for the EQB 250+ Electric at “From $499 p/w all inclusive” and the EQV 300 Electric at “From $519 p/w all inclusive.”

• Simplicity: This model aims to simplify budgeting for drivers by consolidating multiple costs into a single, predictable weekly figure.
• Value Proposition: Splend positions this as “unbeatable value” and claims the “lowest total ownership cost” for rideshare drivers.
• Flexibility: The “Flexi Own Plans” are described as offering different minimum terms and paths to ownership.

“0% APR Equivalent” and “DIY Comparison”

A critical aspect of Splend’s pricing explanation is their “DIY comparison” table. This table contrasts Splend’s model with a “traditional, do-it-yourself way of purchasing a car.” Key figures in this comparison include:

• Vehicle Retail Driveaway Price: For a Kia EV5 Air Long Range, this is listed as $67,206 for both Splend and the DIY comparison.
• Car Payment: Splend’s “Car Payment” is shown as $258 (weekly) with “0% APR Equivalent,” while the DIY comparison shows $344 (weekly) with “APR of 12% over a 5-year term, paid monthly.”
• Total Payment: Splend’s total weekly payment is $414, compared to $512 for the DIY method, claiming a saving of $98 per week.

From an Islamic Perspective, this is where the major concern lies. The explicit mention of “APR Equivalent” and the comparison to an “APR of 12%” directly indicate that the underlying financial structure, regardless of how it’s presented, is built upon the concept of interest. A “0% APR Equivalent” in such a context often means the interest component is embedded elsewhere (e.g., in a higher initial vehicle price or other fees disguised within the “all-inclusive” payment) or simply that it’s a promotional rate for a limited time within an interest-based framework. The fact that they compare it to a conventional interest-based loan confirms that their model is fundamentally similar, only potentially offering a more competitive rate or a different bundling strategy. Grace.com.au Review

Implications of Interest-Based Pricing

For Muslims, any pricing model that directly or indirectly involves riba (interest) is impermissible. This applies whether the interest is explicitly stated as a percentage or disguised within an “equivalent” term or bundled payment. The prohibition of riba in Islam is absolute and encompasses any form of predetermined excess on a loan or debt.

• Ethical Non-Compliance: The pricing, despite its apparent convenience or cost-effectiveness, fundamentally clashes with Islamic financial principles.
• Spiritual Impermissibility: Engaging in such transactions, even with seemingly favourable terms, means participating in an activity explicitly forbidden in Islam.
• Need for Halal Alternatives: For a Muslim, the existence of such pricing structures necessitates seeking out genuinely Shariah-compliant alternatives that are based on trade, partnership, or ethical leasing, where profit is generated through legitimate commercial activities rather than interest.

In summary, while Splend.com.au’s pricing aims for simplicity and value, its foundation in “APR Equivalent” and comparisons to interest-bearing loans makes it unsuitable for those adhering to Islamic financial ethics. The “all-inclusive” weekly payment, though convenient, cannot override the fundamental impermissibility of interest.

Splend.com.au vs. Halal Alternatives

When comparing Splend.com.au to genuinely halal alternatives for vehicle acquisition, the key differentiator is not merely the cost or convenience, but the underlying financial mechanism. Splend.com.au, based on its “APR Equivalent” and comparisons to interest-based loans, operates within a conventional financial framework that involves riba (interest), which is prohibited in Islam. Halal alternatives, on the other hand, adhere strictly to Islamic financial principles, avoiding interest through different contractual structures.

Splend.com.au (Conventional, Interest-Based)

• Financial Model: Appears to be based on a form of interest-bearing finance (Flexi Own plans), despite marketing “0% APR Equivalent.” The comparison to a 12% APR loan highlights its rootedness in conventional lending.
• Inclusions: Bundles vehicle cost, registration, comprehensive rideshare insurance, maintenance, and servicing into one weekly payment.
• Pros (Conventional View): Convenience, predictable weekly payments, all-inclusive package, potentially lower weekly outlay compared to DIY conventional financing (as per their comparison).
• Cons (Islamic View): Impermissible due to involvement with riba (interest). This is the overriding factor. Lack of Shariah compliance, potential for ethical burden on the individual.
• Target Audience: Rideshare drivers seeking an easy, all-in-one solution for vehicle access without high upfront costs or complex loan applications.

Halal Alternatives (Islamic Compliant)

1. Murabahah (Cost-Plus Sale)

• Financial Model: An Islamic financial institution (IFI) buys the car and resells it to the client at a known, pre-agreed profit margin. Payments are made in instalments. This is a legitimate sale, not a loan with interest.
• Inclusions: Primarily covers the vehicle acquisition. Insurance and maintenance would typically be separate arrangements, though some IFIs might offer Shariah-compliant packaged deals.
• Pros: Fully Shariah-compliant (Halal), transparent profit margin, fixed instalment payments, client owns the asset from the outset.
• Cons: Fewer dedicated IFIs in Australia compared to conventional lenders. May require separate arrangements for insurance (Takaful) and maintenance. Total cost might be perceived as higher than a “0% APR” deal, but without the impermissible element.
• Suitability: Ideal for those who want clear, ethical ownership from day one.

2. Ijarah (Leasing with Option to Purchase)

• Financial Model: The IFI owns the vehicle and leases it to the client. The client pays rental fees for the use of the asset. At the end of the lease, the client has the option to buy the car at a pre-determined price or symbolic value.
• Inclusions: Covers vehicle usage. Maintenance might be included depending on the Ijarah contract type (operating lease vs. finance lease). Insurance (Takaful) would typically be separate.
• Pros: Fully Shariah-compliant (Halal), flexible terms, payments are rental for usage, not interest.
• Cons: Client doesn’t own the vehicle until the lease term and purchase option are exercised. Limited availability of Ijarah products specifically for vehicles in Australia.
• Suitability: Good for those who prefer a lease-to-own model that is ethically sound.

3. Direct Cash Purchase

• Financial Model: No financing involved. The individual pays the full price of the vehicle upfront.
• Inclusions: Only the vehicle cost. All other expenses (registration, insurance, maintenance) are managed separately by the owner.
• Pros: Undeniably Shariah-compliant (Halal), no debt, no interest, full immediate ownership.
• Cons: Requires significant upfront capital.
• Suitability: Best for those with sufficient savings or who prefer to avoid any form of financing.

4. Takaful (Islamic Insurance)

• Financial Model: A cooperative system where participants contribute to a common fund. This fund is used to pay claims, and any surplus is shared amongst participants. Avoids interest, gambling, and excessive uncertainty.
• Inclusions: Provides comprehensive cover similar to conventional insurance, but structured ethically.
• Pros: Fully Shariah-compliant (Halal), promotes mutual assistance.
• Cons: Limited availability in Australia. May require finding a standalone Takaful provider.
• Suitability: Essential for ethical vehicle insurance, regardless of how the car is acquired.

Conclusion of Comparison:

The fundamental difference lies in the ethical foundation. Splend.com.au offers a convenient, bundled service, but its financial structure appears to be rooted in interest, making it impermissible for Muslims. Halal alternatives prioritise Shariah compliance, offering legitimate sale, leasing, or direct purchase models that explicitly avoid riba. For a Muslim, the choice is clear: prioritize ethical compliance over apparent convenience or short-term cost savings offered by non-compliant models. Eatiku.com.au Review

FAQs

What is Splend.com.au?

Splend.com.au is an Australian platform that provides vehicle solutions primarily for rideshare drivers, offering “Flexi Own Plans” that bundle car acquisition, registration, comprehensive rideshare insurance, maintenance, and servicing into one weekly payment. They aim to simplify vehicle ownership for those in the on-demand driving industry.

Is Splend.com.au Shariah-compliant (Halal)?

No, based on the information provided on their website, Splend.com.au does not appear to be Shariah-compliant. Their explicit mention of “0% APR Equivalent” and comparisons to conventional loans with an “APR of 12%” strongly indicate that their financial model involves interest (riba), which is strictly prohibited in Islam.

What is “Flexi Own” at Splend.com.au?

“Flexi Own” is Splend.com.au’s primary offering, allowing rideshare drivers to acquire a vehicle through a flexible ownership plan. It’s designed to include all major vehicle-related costs—like the car itself, registration, insurance, and maintenance—in a single, recurring weekly payment.

Does Splend.com.au offer cars for sale outright?

Yes, in addition to their “Flexi Own Plans,” Splend.com.au also lists “Used cars for sale” on their website, indicating that outright purchase options might be available for certain pre-owned vehicles. However, the details of these sales, particularly if financing is offered, would need to be scrutinised for Shariah compliance.

What types of cars does Splend.com.au offer?

Splend.com.au offers a range of vehicles, including new and pre-owned options. They feature popular models like the Toyota RAV4 Hybrid GX and promote electric vehicles (EVs) such as the BMW i4 eDrive35, Hyundai Santa Fe Hybrid, and Chery Omoda E5 EX, catering to the needs of rideshare drivers.

Is insurance included in Splend.com.au’s weekly payment?

Yes, Splend.com.au explicitly states that comprehensive rideshare damage and loss cover is included as part of their all-inclusive weekly payment for their “Flexi Own Plans.” This is a key feature designed to simplify the financial burden for drivers.

Does Splend.com.au help new Uber drivers?

Yes, Splend.com.au positions itself as a supportive partner for new rideshare drivers. They claim to help individuals find, own, register, and run the best vehicle for on-demand driving, including assistance with getting set up with Uber.

What is the “0% APR Equivalent” mentioned by Splend.com.au?

The “0% APR Equivalent” is a term used by Splend.com.au in their pricing comparison to highlight what they claim is a more cost-effective option than traditional car financing with an interest rate. However, for Muslims, the very use of “APR Equivalent” suggests an underlying financial model that is based on interest (riba), which is prohibited.

What are the main ethical concerns with Splend.com.au for Muslims?

The main ethical concern for Muslims is the apparent involvement of riba (interest) in Splend.com.au’s financial products, as indicated by terms like “APR Equivalent” and comparisons to interest-bearing loans. Islam strictly prohibits engaging in interest-based transactions. Snsnails.com.au Review

What are Shariah-compliant alternatives to Splend.com.au for vehicle acquisition?

Shariah-compliant alternatives include direct cash purchase, Murabahah (cost-plus sale) through an Islamic financial institution, Ijarah (leasing with option to purchase) through an Islamic financial institution, or potentially Diminishing Musharakah (partnership). These models avoid interest.

Where can I find Takaful (Islamic insurance) in Australia?

While Takaful providers are less common than conventional insurers in Australia, research into niche Islamic finance providers or specific Shariah-compliant insurance brokers may yield options. It requires diligent searching as the market is still developing.

How does Murabahah work for car financing?

In Murabahah, an Islamic financial institution (IFI) buys the desired car from the seller (e.g., a dealership) and then sells it to the client at a pre-agreed, fixed mark-up. The client pays the IFI in instalments over a set period. The profit comes from the legitimate sale of the asset, not from lending money with interest.

How does Ijarah work for car financing?

Ijarah is an Islamic leasing contract where an Islamic financial institution owns the vehicle and leases it to the client for a specific period. The client pays rental fees for the use of the vehicle. At the end of the lease term, the client usually has the option to purchase the vehicle. The payments are considered rent for the asset’s utility.

Can I get an interest-free car loan in Australia?

Genuine interest-free car loans (Qard Hasan) are rare from commercial lenders. They might be available through specific community organisations or charitable funds, but usually with strict eligibility criteria and limited amounts. Commercial Islamic finance options (like Murabahah or Ijarah) are not interest-free loans but rather permissible trade-based or leasing contracts.

What should I do if I’ve already signed a contract with Splend.com.au?

If you have signed a contract with Splend.com.au and are concerned about its compliance with Islamic principles, review your contract for early termination clauses. Contact Splend.com.au’s customer service to understand the process and any associated fees for ending the agreement. Simultaneously, seek forgiveness and plan to transition to a Shariah-compliant alternative as soon as financially and practically feasible.

Does Splend.com.au include vehicle maintenance?

Yes, Splend.com.au states that maintenance and servicing are included in their all-inclusive weekly payment for “Flexi Own Plans,” aiming to cover all essential upkeep costs for the vehicle.

Can Splend.com.au help with joining Uber?

Yes, Splend.com.au explicitly mentions assisting drivers with getting set up with Uber, streamlining the process of becoming an Uber driver by providing the necessary vehicle and related services.

What are the “Splend Ownership Benefits”?

Splend.com.au claims “Splend Ownership Benefits” that include helping drivers choose the right vehicle to maximise earning potential, minimise costs, and reduce environmental impact, along with advice on EVs and access to green subsidies. The core benefit, as advertised, is simplifying ownership for rideshare drivers.

Does Splend.com.au offer both new and pre-owned vehicles?

Yes, Splend.com.au offers “New Car Flexi Own Plans” and “Pre-owned Flexi Own plans,” as well as “Used cars for sale,” indicating options for both new and used vehicles. Travelkon.com.au Review

Is it permissible to use conventional car rentals for short periods in Islam?

Generally, using conventional car rentals for short periods is permissible in Islam, provided the rental agreement itself does not involve interest or any other impermissible clauses. The payment is for the utility of the car, not a loan. However, long-term conventional leases or financing would fall under scrutiny due to potential riba involvement.

How does Splend.com.au compare to traditional car dealerships?

Splend.com.au differs from traditional car dealerships by offering an “all-inclusive” weekly payment model specifically for rideshare drivers, bundling vehicle cost, insurance, maintenance, and registration. Traditional dealerships primarily sell vehicles, often requiring separate financing, insurance, and maintenance arrangements. However, both typically operate within conventional, interest-based financial frameworks.

What is the average weekly cost of a Splend.com.au vehicle?

Based on examples on their website, the weekly cost for vehicles like the Mercedes-EQB 250+ Electric starts “From $559 p/w all inclusive,” and the Mercedes-Benz EQV 300 Electric starts “From $549 p/w all inclusive.” Costs vary depending on the vehicle model and plan.

Does Splend.com.au offer trial periods?

The website mentions “Uber Car rental” and “Flexi Own Lite” which might imply short-term rental or trial options, though details would need to be confirmed directly with Splend. It’s important to ensure any trial or rental contract is free from interest.

Are there any specific requirements to join Splend.com.au?

While the website mentions that you can “skip the need for an extensive credit history” for their Flexi Own plans, general requirements for rideshare drivers (like a valid Australian driver’s licence, meeting Uber’s age and experience criteria) would apply. Specific details on Splend’s own eligibility criteria would be in their terms and conditions.

Can I use a Splend.com.au car for personal use as well as rideshare?

Splend.com.au’s offerings are tailored for rideshare drivers, and the comprehensive rideshare damage and loss cover indicates the vehicles are intended for both commercial and personal use within the scope of their agreement.

How does Splend.com.au contribute to sustainability?

Splend.com.au highlights a commitment to sustainability by actively promoting electric vehicles (EVs) like BMW i4, Hyundai Santa Fe Hybrid, and Chery Omoda E5 EX, noting that these can save fuel costs and give access to green subsidies and benefits. They have a dedicated “Sustainability” section on their website.

What customer support options does Splend.com.au provide?

Splend.com.au provides a phone number (1800-775-363), an “Enquire now” form, and mentions visiting a “hub” or talking to them directly, suggesting various channels for customer support. Testimonials also praise their customer service.

Are the earnings figures provided by Splend.com.au guaranteed?

No, the website explicitly states that “Earnings figures are estimates only and based on a driver driving 40 hours per week. Actual earnings will differ.” This clarifies that the income projections are not guarantees.

What happens at the end of a Splend.com.au Flexi Own term?

The website mentions “explore different paths to ownership” which implies that at the end of the minimum term, there might be options to fully own the vehicle or perhaps renew the agreement. Specific details would be in the contract. Obble.com.au Review

Does Splend.com.au operate across all of Australia?

The testimonials from various Australian cities (Gold Coast, Melbourne, Brisbane, Perth, Sydney, Adelaide, Canberra) suggest that Splend.com.au has a wide operational reach across Australia, though specific service areas should be confirmed directly with them.