The Ruling on Installment Sales from Banks for the Purchase of Cars
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Question:
This questioner says: I hope to know the ruling on this installment sale from one of the banks, and that is by the following method. The first step is that you go to the bank wanting to buy a car on installment, and the bank says: Go to such-and-such a showroom and bring the price list of the cars you want to buy. Then the bank goes and buys the cars and owns them fully, and then it begins to sell them to the installment applicant through contracts approved by some scholars affiliated with the bank’s authority. Knowing that I am not bound by anything if I do not want to buy the cars after the bank has owned them.
Answer:
This is not permissible. This is not permissible because the bank is selling something it does not have, nor is it buying it for itself; it is buying it for you. It buys it for you and delivers its price as a loan, lending it to you and taking an increase from you. That is the reality. Even if they cover it up with tricks, the reality is that they do not buy the car for themselves, but rather they buy it for you. Or, after you buy it, they deliver its price as a loan and recover it from you with an increase, and they call this a sale, which is not valid. It is not permissible for a bank or anyone else to sell anything unless it is present with them in their ownership. If a customer comes and the goods are with them, whether a car or otherwise, they may sell it to him, and there is no harm in that. But if they have no goods and nothing with them, and they go to people’s properties and people’s showrooms…
And the purchase takes place after the agreement between them, the signatures, and the things you have agreed to. After you sign, and after you have agreed, and after you fill out the forms, all of this is tricks and lies. So it is not permissible for anyone, neither a bank nor anyone else, to sell anything unless it is in their ownership when the customer comes to them.
And there is a hadith of Hakim ibn Hizam in which he said: the market, and he said: The Prophet (peace and blessings be upon him) said: Sunan Ibn Majah 2187Hasan (Darussalam). Yes.
The presenter:
May Allah reward you, Honorable Shaykh,
This questioner says: I hope to know the ruling on this installment sale from one of the banks, and that is by the following method. The first step is that you go to the bank wanting to buy a car on installment, and the bank says: Go to such-and-such a showroom and bring the price list of the cars you want to buy. Then the bank goes and buys the cars and owns them fully, and then it begins to sell them to the installment applicant through contracts approved by some scholars affiliated with the bank’s authority. Knowing that I am not bound by anything if I do not want to buy the cars after the bank has owned them.
Answer:
This is not permissible. This is not permissible because the bank is selling something it does not have, nor is it buying it for itself; it is buying it for you. It buys it for you and delivers its price as a loan, lending it to you and taking an increase from you. That is the reality. Even if they cover it up with tricks, the reality is that they do not buy the car for themselves, but rather they buy it for you. Or, after you buy it, they deliver its price as a loan and recover it from you with an increase, and they call this a sale, which is not valid. It is not permissible for a bank or anyone else to sell anything unless it is present with them in their ownership. If a customer comes and the goods are with them, whether a car or otherwise, they may sell it to him, and there is no harm in that. But if they have no goods and nothing with them, and they go to people’s properties and people’s showrooms…
And the purchase takes place after the agreement between them, the signatures, and the things you have agreed to. After you sign, and after you have agreed, and after you fill out the forms, all of this is tricks and lies. So it is not permissible for anyone, neither a bank nor anyone else, to sell anything unless it is in their ownership when the customer comes to them.
And there is a hadith of Hakim ibn Hizam in which he said:
A man comes to me and asks me to sell him something I do not have, then I go and buy it from
الرجل يأتيني فيسألني البيع ليس عندي ثم أمضي فأشتريه منDo not sell what is not with you.
لا تبع ما ليس عندكThe presenter:
May Allah reward you, Honorable Shaykh,
Source
75-اللقاء الأسبوعي مع الشيخ صالح الفوزان - 32 — archive.org (1:08:21)
The Arabic text is a machine transcription of the audio recording.