The ruling on selling cars on installment with an increase in price
Machine translationRead the Arabic original
Question:
This questioner says: What is your opinion, Honorable Shaykh, regarding some people who trade in cars on installment? For example, some buy a car for forty thousand riyals and sell it for ninety thousand riyals on monthly installments of one thousand five hundred, which is the amount of the monthly installment. What is the ruling on this, given the difference in price?
Answer:
There is no harm if he buys a car and sells it to some people on credit; there is nothing wrong with that. However, he will not sell it until he has taken possession of it, after he has bought it or taken possession of it. So if he buys a car and takes possession of it for forty thousand or fifty thousand, then sells it to another person on installments for sixty thousand, eighty thousand, or seventy thousand, there is no harm in that. The common people call this al-wa'dah. The point is that there is nothing wrong with it, and there is no harm in a person buying a car, a house, or land for a cash price, then selling it to someone else on monthly or annual installments. There is nothing wrong with that. Yes.
The presenter:
May Allah reward you with good.
This questioner says: What is your opinion, Honorable Shaykh, regarding some people who trade in cars on installment? For example, some buy a car for forty thousand riyals and sell it for ninety thousand riyals on monthly installments of one thousand five hundred, which is the amount of the monthly installment. What is the ruling on this, given the difference in price?
Answer:
There is no harm if he buys a car and sells it to some people on credit; there is nothing wrong with that. However, he will not sell it until he has taken possession of it, after he has bought it or taken possession of it. So if he buys a car and takes possession of it for forty thousand or fifty thousand, then sells it to another person on installments for sixty thousand, eighty thousand, or seventy thousand, there is no harm in that. The common people call this al-wa'dah. The point is that there is nothing wrong with it, and there is no harm in a person buying a car, a house, or land for a cash price, then selling it to someone else on monthly or annual installments. There is nothing wrong with that. Yes.
The presenter:
May Allah reward you with good.
Source
فتاوى المسجد الحرام (شعبان ١٤١٧ هـ) - ١ — archive.org (56:01)
The Arabic text is a machine transcription of the audio recording.