Religiosity and Customers’ Intentions to Adopt Islamic Auto Financing: A Qualitative Inquiry

Abstract

The growing demand for Islamic financial products reflects the increasing awareness and preference among consumers for Shariah-compliant financial solutions. While previous research has quantitatively examined factors influencing the adoption of Islamic banking such as awareness, perceived compatibility, and social influence, however, customers’ perspective remains unexplored. There is a significant gap in understanding the qualitative dimensions of consumer intention shaped by their religious beliefs. This study aims to explore the how religious beliefs motivate customers to choose Islamic auto finance. Using a qualitative research design, the study explores consumers perception of Islamic auto finance in terms of its alignment with their religious faith, ethical values, and financial needs. Semi-structured interviews were conducted with a purposive sample of customers who have either considered or already availed Islamic auto financing. The analysis adopts a thematic approach to uncover underlying motivations, perceptions, and the interplay between religious commitment and financial decision-making. Exploratory findings suggest that religiosity plays a major role for some consumers by serving as the primary determinant in their financing choice, whereas for a tiny minority, practical considerations such as service quality, cost competitiveness, and institutional trust mediate the influence of religious sentiment. The study also reveals that awareness of Islamic finance principles enhances consumers’ confidence and loyalty toward Islamic financial institutions. By providing a deeper understanding of how religiosity interacts with financial behavior, this study contributes to the broader discourse on consumer psychology in Islamic finance. The findings offer practical implications for policymakers and Islamic financial institutions to design marketing strategies, educational campaigns, and financial products that align with both the spiritual and material aspirations of Muslim consumers.