What is the ruling on increasing the price in a sale with installment payments?
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Question:
May Allah reward you. The questioner says: I bought a car from a riba (usury or interest) bank. They told me the car is fifty cash, and seventy-five on installments. Is that considered a riba transaction, and what should I do?
Answer:
If the car is with the seller at the time of sale, whether it is a bank or otherwise, and if the car is in his ownership and he sells it to you for a deferred, installment price that is higher than the cash price, there is no harm in that. This is because they will not accept deferral without an increase. So there is no harm in buying a commodity for a deferred price that is higher than its cash price, but on the condition that the commodity is in the seller's possession at the time of sale. As for making a contract with him when he has nothing and then going to buy it afterwards, that is not permissible, and the sale is invalid. The Prophet (peace and blessings be upon him) said to Hakim ibn Hizam:Sunan Ibn Majah 2187Hasan (Darussalam)
May Allah reward you. The questioner says: I bought a car from a riba (usury or interest) bank. They told me the car is fifty cash, and seventy-five on installments. Is that considered a riba transaction, and what should I do?
Answer:
If the car is with the seller at the time of sale, whether it is a bank or otherwise, and if the car is in his ownership and he sells it to you for a deferred, installment price that is higher than the cash price, there is no harm in that. This is because they will not accept deferral without an increase. So there is no harm in buying a commodity for a deferred price that is higher than its cash price, but on the condition that the commodity is in the seller's possession at the time of sale. As for making a contract with him when he has nothing and then going to buy it afterwards, that is not permissible, and the sale is invalid. The Prophet (peace and blessings be upon him) said to Hakim ibn Hizam:
Do not sell what is not with you.
لا تبع ما ليس عندك
Source
قناة «العلامة الدكتور صالح الفوزان»، ما حكم زيادة الثمن في البيع بالتقسيط؟ للشيخ الفوزان — youtube.com
The Arabic text is a machine transcription of the audio recording.