Selling a car on installment before taking possession of it
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Question:
A question is asked about an incident that sometimes occurs: a man wants to buy a car, but he does not have the money. His partner says to him, “I will sell you a car on installment.” They agree, then he goes to the showroom, and his partner buys a car in the first man’s name and sells it to him on installment for a higher price. What is the ruling on that?
Answer:
Selling him a car on installment for a deferred price is permissible, but the car must be owned by the seller before the contract is made; the car must be in the seller’s possession before the contract. However, if the contract is made between them while the car is not in his possession, and then he goes and buys it and gives it to him, this is an invalid sale, based on the saying of the Messenger of Allah (peace and blessings be upon him)Sunan Ibn Majah 2187Hasan (Darussalam) Hakim ibn Hizam came to the Messenger of Allah (peace and blessings be upon him) and said, “And I sell it to him?” He said (peace and blessings be upon him) Sunan Ibn Majah 2187Hasan (Darussalam) Therefore, the car, or cars, or goods must be available with the seller first, then he contracts with the buyer and sells to him from his existing possessions for a deferred price; there is no harm in that. Yes.
A question is asked about an incident that sometimes occurs: a man wants to buy a car, but he does not have the money. His partner says to him, “I will sell you a car on installment.” They agree, then he goes to the showroom, and his partner buys a car in the first man’s name and sells it to him on installment for a higher price. What is the ruling on that?
Answer:
Selling him a car on installment for a deferred price is permissible, but the car must be owned by the seller before the contract is made; the car must be in the seller’s possession before the contract. However, if the contract is made between them while the car is not in his possession, and then he goes and buys it and gives it to him, this is an invalid sale, based on the saying of the Messenger of Allah (peace and blessings be upon him)
Do not sell what is not with you.
لا تبع ما ليس عندكA man comes to me asking about a sale, but I do not have it, then I go and buy it from the market,
يأتيني الرجل يسألني البيع ليس عندي، ثم أمضي وأشتريه من السوق،Do not sell what is not with you.
لاَ تَبِعْ مَا لَيْسَ عِنْدَكَ
Source
قناة «العلامة الدكتور صالح الفوزان»، محاضرات في العقيدة والدعوة-026-الربا وخطره|صالح الفوزان|كبار العلماء — youtube.com (1:24:33)
The Arabic text is a machine transcription of the audio recording.