Mohd Nazri Mohd NoorMuhammad Ridhwan Ab. Aziz2024-05-302024-05-302023Mohd Noor, M. N. ., & Ab. Aziz, M. R. (2023). Developing a Hawalah Model for Islamic Car Financing Settlement. I-IECONS E-Proceedings, 10(1), 316–323. https://doi.org/10.33102/iiecons.v10i1.862805-474110.33102/iiecons.v10i1.86https://epiiecons.usim.edu.my/index.php/eproceeding/article/view/86https://oarep.usim.edu.my/handle/123456789/1721210th INTERNATIONAL ISLAMIC ECONOMIC SYSTEM CONFERENCE 2023 (I-iECONS 2023) : “Sustainable Development through Innovative Economic Transformation” /Editors : Amalina Mursidi, Agoos Munalis Tahir, Suhaida Herni Suffarruddin, Norfhadzilawati Rahim, Murad Ali Ahmad Al-Zaqeba, Muhammad Iqmal Hisham Kamaruddin Conference Dates: August 14 2023 | Conference Location: Millennium Makkah Al Naseem Hotel Mecca Saudi Arabia Organized by Faculty of Economics and MuamalatAs revealed by Malaysia’s bankruptcy statistics between 2019 until May 2023 , around 11.05% of bankruptcy in Malaysia is due to default of vehicle loan. This has led to the tightening up of vehicle loan underwriting and increased vehicle loan rejection rates. This paper attempts to solve this problem by proposing an Islamic contract transfer of debt; al-Hawalah as an alternative to reduce the number of defaulters in Islamic car financing. This study is an exploratory research using content analysis from the secondary data by observing on two aspects: car financing insolvency data and the Hawalah contract. In fiqh muamalat, ḥawālah refers to the transfer of financial liability from one debtor to another that would free the initial debtor from any debt (Kureshi and Hayat, 2014). This study is expected to come out with a Hawalah model for car financing settlement in Islamic bank.en-USTransfer of debt, al-Hawalah, Car FinancingArticle316323