Car showrooms: A car is available, a person buys it, then sells it to another on credit, and the showroom stipulates that it not be transferred for sale in another showroom
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Fatwa No. ( 21669 )
Praise be to Allah alone, and peace and blessings be upon the one after whom there is no prophet. And after: The Permanent Committee for Scholarly Research and Ifta has reviewed what was sent to His Eminence the Grand Mufti from the questioner, the owner of a car showroom, via the Acting General Manager of the Ministry of Islamic Affairs branch in the Tabuk region, and referred to the Committee by the General Secretariat of the Senior Scholars’ Council with number (4869) and date 5/8/1421 AH. The questioner asked a question, the text of which is: I am the owner of a car showroom in Tabuk, and in this message I explain to you what actually happens in the buying and selling of new cars, such as Hiluxes and Land Cruisers. We have the new car according to its type, then the buyer comes and buys it according to the agreement between him and the seller, in monthly installments or for a fixed period. But before the purchase, we stipulate that he not transfer it to any showroom, and he agrees to that. At the time of sale, a single price is set for him within the showroom, and they do not increase it. For example, a Hilux is sold outside the showroom or in the market, more precisely, for thirty-eight thousand riyals (38,000), whereas they do not give him more than thirty-six thousand riyals (36,000) within the showroom. If he gets angry at the low price or at not being able to transfer it outside the showroom, we tell him: “If you liked the price or if you don’t want it, we will tear up the papers and it will be as if nothing happened.” So, out of his need for money, he is forced to agree to the sale and the price set within the showroom. If the buyer, i.e., the debtor, says that he will transfer the ownership of the car to his name, the showroom refuses that. And if they agree in some cases, the fee or commission is doubled. If it was five hundred riyals (500) when he bought and sold it in the showroom, for example, then in the case of transferring it to his name, they ask him for (1000) riyals. This is what happens daily inside the showrooms: the monopolization of new cars by the showroom owners; that is, they are not sold outside the showroom, nor transferred, nor is ownership transferred to the buyer’s name. If he refuses, there is no sale for him. And despite his will, and due to his need that forced him into debt, he agrees, buys on debt, and sells for cash within the showroom at the price determined by those inside the showroom. This is my issue, and I have placed it before your excellence out of fear of Allah and to clear my conscience on the day I meet Him. We ask Allah to prolong your life and increase your knowledge for the good of the people,
the showroom and they do not increase it. For example, the Hilux is sold outside the showroom or in the market, more precisely, for thirty-eight thousand riyals (38,000), whereas they do not give it inside the showroom for more than thirty-six thousand riyals (36,000). If he gets angry at the low price or at not transferring it outside the showroom, we tell him: "If you liked the price, or if you don't want it, we will tear up the papers and it will be as if nothing happened." Under the pressure of his need for money, he is forced to agree to the sale at the price set inside the showroom. If the buyer, who is the debtor, says that he will transfer ownership of the car to his name, the showroom refuses. If they agree in some cases, the paperwork or commission is doubled. If it was five hundred riyals (500) when he bought and sold it at the showroom, for example, then in the case of transferring it to his name, they ask him for one thousand riyals (1000). This is what happens daily inside the showrooms: the monopolization of new cars by the showroom owners; that is, they are not sold outside the showroom, nor transferred, nor is ownership transferred to the buyer's name. If he refuses, there is no sale for him. Despite his will, and due to the need that forced him into debt, he agrees, buying on credit and selling for cash inside the showroom at the price determined by those inside the showroom. This is my issue, which I have placed before your eminence out of fear of Allah and to clear my conscience on the day I meet Him. We ask Allah to prolong your life and increase your knowledge for the good of the people,
hoping for your eminence to clarify what is permissible for us and what is forbidden for us.
After the Committee’s study of the inquiry, it answered that these conditions are invalid; because if the sale is completed, the buyer is free to dispose of his car as he wishes, complete its procedures, and sell it to whomever he wants. He must take it out of the seller’s place, because possession is not completed except by doing so. The seller has the right to pledge it for its value and prevent him from selling it until he pays the value. And success is from Allah, and may Allah send prayers and blessings upon our Prophet Muhammad, his family, and his companions.
Praise be to Allah alone, and peace and blessings be upon the one after whom there is no prophet. And after: The Permanent Committee for Scholarly Research and Ifta has reviewed what was sent to His Eminence the Grand Mufti from the questioner, the owner of a car showroom, via the Acting General Manager of the Ministry of Islamic Affairs branch in the Tabuk region, and referred to the Committee by the General Secretariat of the Senior Scholars’ Council with number (4869) and date 5/8/1421 AH. The questioner asked a question, the text of which is: I am the owner of a car showroom in Tabuk, and in this message I explain to you what actually happens in the buying and selling of new cars, such as Hiluxes and Land Cruisers. We have the new car according to its type, then the buyer comes and buys it according to the agreement between him and the seller, in monthly installments or for a fixed period. But before the purchase, we stipulate that he not transfer it to any showroom, and he agrees to that. At the time of sale, a single price is set for him within the showroom, and they do not increase it. For example, a Hilux is sold outside the showroom or in the market, more precisely, for thirty-eight thousand riyals (38,000), whereas they do not give him more than thirty-six thousand riyals (36,000) within the showroom. If he gets angry at the low price or at not being able to transfer it outside the showroom, we tell him: “If you liked the price or if you don’t want it, we will tear up the papers and it will be as if nothing happened.” So, out of his need for money, he is forced to agree to the sale and the price set within the showroom. If the buyer, i.e., the debtor, says that he will transfer the ownership of the car to his name, the showroom refuses that. And if they agree in some cases, the fee or commission is doubled. If it was five hundred riyals (500) when he bought and sold it in the showroom, for example, then in the case of transferring it to his name, they ask him for (1000) riyals. This is what happens daily inside the showrooms: the monopolization of new cars by the showroom owners; that is, they are not sold outside the showroom, nor transferred, nor is ownership transferred to the buyer’s name. If he refuses, there is no sale for him. And despite his will, and due to his need that forced him into debt, he agrees, buys on debt, and sells for cash within the showroom at the price determined by those inside the showroom. This is my issue, and I have placed it before your excellence out of fear of Allah and to clear my conscience on the day I meet Him. We ask Allah to prolong your life and increase your knowledge for the good of the people,
the showroom and they do not increase it. For example, the Hilux is sold outside the showroom or in the market, more precisely, for thirty-eight thousand riyals (38,000), whereas they do not give it inside the showroom for more than thirty-six thousand riyals (36,000). If he gets angry at the low price or at not transferring it outside the showroom, we tell him: "If you liked the price, or if you don't want it, we will tear up the papers and it will be as if nothing happened." Under the pressure of his need for money, he is forced to agree to the sale at the price set inside the showroom. If the buyer, who is the debtor, says that he will transfer ownership of the car to his name, the showroom refuses. If they agree in some cases, the paperwork or commission is doubled. If it was five hundred riyals (500) when he bought and sold it at the showroom, for example, then in the case of transferring it to his name, they ask him for one thousand riyals (1000). This is what happens daily inside the showrooms: the monopolization of new cars by the showroom owners; that is, they are not sold outside the showroom, nor transferred, nor is ownership transferred to the buyer's name. If he refuses, there is no sale for him. Despite his will, and due to the need that forced him into debt, he agrees, buying on credit and selling for cash inside the showroom at the price determined by those inside the showroom. This is my issue, which I have placed before your eminence out of fear of Allah and to clear my conscience on the day I meet Him. We ask Allah to prolong your life and increase your knowledge for the good of the people,
hoping for your eminence to clarify what is permissible for us and what is forbidden for us.
After the Committee’s study of the inquiry, it answered that these conditions are invalid; because if the sale is completed, the buyer is free to dispose of his car as he wishes, complete its procedures, and sell it to whomever he wants. He must take it out of the seller’s place, because possession is not completed except by doing so. The seller has the right to pledge it for its value and prevent him from selling it until he pays the value. And success is from Allah, and may Allah send prayers and blessings upon our Prophet Muhammad, his family, and his companions.
Source
www.alifta.gov.sa
The Arabic text is copied verbatim from the original source, without any edits.