The Ruling on Sale via Leasing Ending in Ownership
Machine translationRead the Arabic original
Question:
The questioner says: I want to buy a new car, but I do not have the financial means, as only a portion of my salary is available to me. There is a system of sale via leasing ending in ownership, where I pay a down payment of five thousand, then a sum in monthly installments of sixty-five thousand, and then a final payment of twenty thousand riyals. What is the ruling on this? I am in need of it, and may Allah reward you with good. I should also mention that if I fail to pay the installments due, the car is repossessed, and the contract is voided.
Answer:
This is a sale that is not permissible. Leasing ending in ownership is an invalid contract, so it is not permissible. If you need a car, buy it on credit with a deferred price, either in installments or in a single payment in the future. Buy it on credit without leasing. This system is established by companies, banks, or some people in order to exploit the poor. They exploit him and take fees from him, and then at the end, if the car breaks down and becomes unfit for use, they say it is your property. What benefit does he get from it? After he has worn it out with toil and work, they say it is his property. So what they intend by this is merely to exploit the poor. Therefore, if you need a car and do not have cash on hand, buy it for a deferred price, either in installments or in a single payment when the due date arrives. And if you cannot afford what Allah has made obligatory upon you, wait until you are able to.
The presenter:
May Allah reward you, Honorable Shaykh.
The questioner says: I want to buy a new car, but I do not have the financial means, as only a portion of my salary is available to me. There is a system of sale via leasing ending in ownership, where I pay a down payment of five thousand, then a sum in monthly installments of sixty-five thousand, and then a final payment of twenty thousand riyals. What is the ruling on this? I am in need of it, and may Allah reward you with good. I should also mention that if I fail to pay the installments due, the car is repossessed, and the contract is voided.
Answer:
This is a sale that is not permissible. Leasing ending in ownership is an invalid contract, so it is not permissible. If you need a car, buy it on credit with a deferred price, either in installments or in a single payment in the future. Buy it on credit without leasing. This system is established by companies, banks, or some people in order to exploit the poor. They exploit him and take fees from him, and then at the end, if the car breaks down and becomes unfit for use, they say it is your property. What benefit does he get from it? After he has worn it out with toil and work, they say it is his property. So what they intend by this is merely to exploit the poor. Therefore, if you need a car and do not have cash on hand, buy it for a deferred price, either in installments or in a single payment when the due date arrives. And if you cannot afford what Allah has made obligatory upon you, wait until you are able to.
The presenter:
May Allah reward you, Honorable Shaykh.
Source
لقاء مفتوح في الدفاع الجوي بالطائف — alfawzan.live (22:41)
The Arabic text is a machine transcription of the audio recording.