The ruling on selling cars on installment with an increase in the price
Machine translationRead the Arabic original
The Shaykh:
May Allah keep you safe.
The questioner:
Shaykh, regarding the company that finances cars: they buy them for eighty and we pay them one hundred. Does this fall under riba (usury or interest), O Shaykh?
The Shaykh:
If they own the cars completely and sell them to you for a deferred price that is higher than the cash price, there is no harm in that. The sale is permissible; Allah has made selling lawful, and this includes both cash sales and deferred sales. People do not defer payment except with an increase; this is a well-known matter. Yes.
May Allah keep you safe.
The questioner:
Shaykh, regarding the company that finances cars: they buy them for eighty and we pay them one hundred. Does this fall under riba (usury or interest), O Shaykh?
The Shaykh:
If they own the cars completely and sell them to you for a deferred price that is higher than the cash price, there is no harm in that. The sale is permissible; Allah has made selling lawful, and this includes both cash sales and deferred sales. People do not defer payment except with an increase; this is a well-known matter. Yes.
Source
قناة «العلامة الدكتور صالح الفوزان»، حكم بيع السيارات بالتقسيط مع زيادة في الثمن - الشيخ صالح الفوزان — youtube.com (0:16)
The Arabic text is a machine transcription of the audio recording.