The Ruling on Selling Cars by Auction

Question:
I say, Honorable Shaykh, may Allah grant you success. What do car dealers do in the auction? By auction, what do car dealers do in the auction, and that is through the auction, where each person bids against the other and increases the price. Does this fall under a Muslim selling over his brother?

Answer:
No, if the item is put up for auction, it is never that he bids against it. The Prophet (peace and blessings be upon him) said, “Who will bid more than two dirhams? Who will bid more than two dirhams?” So if the car is put up for auction and the auction is open, there is no harm. But if the auction ends and he wants to sell, and the owner of the item closes the auction and wants to sell, no one comes and says, “Be quiet, I have a higher bid.” No, after the closing, it is not permissible for one to…