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﴿ فَاسْأَلُوا أَهْلَ الذِّكْرِ إِن كُنتُمْ لَا تَعْلَمُونَ ﴾

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Riba in Cars and the Sale of a Car on Installments

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Question:
And the wish of the Shaykh, Abu 'Umar, is to mention regarding riba (usury or interest), even though we are happy to study car dealerships or where some people exchange one car for another at car dealerships, where the price of the two cars is estimated and the warranty is followed.

Answer:
That riba (usury or interest) does not enter into cars. It is permissible to sell a car for two cars, or a car for a car with an addition of money to one of them. There is no harm in this, because riba (usury or interest) does not enter into cars, because they have become manufactured items, like vessels. Riba (usury or interest) does not enter into vessels, because they are made and have turned into manufactured goods, so riba (usury or interest) does not enter into them. Yes. And houses, and iron, some of it for some of it, and clothes; everything that riba (usury or interest) enters into is because it has transformed from being weighed to being manufactured. Manufacturing has taken it out of its original state. There is no harm. Good. It is permissible to buy a car on installments; it is the best thing. There is no harm, even if it is not sold on credit except with an increase. It is not sold on credit except with an increase. He does not sell to you on credit except with an increase. There is no harm in this. Some of the brothers have confused the people. He said, "Selling on installments is not permissible, and selling on credit is not permissible." This is a mistake. Selling on credit is well known among the Salaf (the earliest generations). There is no harm, if Allah wills. And the need of the people calls for this. It is a mistake. I know that there are printed letters, but those who wrote them are mistaken, and they are not jurists either, unfortunately. Yes. Hmm? If he buys the car, how does he do it? Does he sell the car, or does he sell it and dispose of its price? It does not contradict. There is no harm. We do not restrict the people broadly. Allah has made selling lawful and has forbidden riba (usury or interest). This is a sale. Yes.
Source قناة «العلامة الدكتور صالح الفوزان»، 11 من 89|شرح العدة في شرح العمدة|البيوع|باب الربا|صالح الفوزان|الفقه|كبار العلماء — youtube.com (51:01)

The Arabic text is a machine transcription of the audio recording.

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