Buying cars on installment through the bank
Machine translationRead the Arabic original
The questioner:
Honorable Shaykh, this questioner says: A man wants to buy cars on installment through one of the banks. The form of this transaction is that you have an account with this bank, then you submit an application to buy the cars or other items you want. The bank deals with three showrooms. If the bank approves your request, you go to one of these three showrooms and select the desired cars, then you submit an invoice from the showroom to the bank. The bank then buys these cars, and the buyer gives a promise to purchase, with a period of fifteen days during which this man has the option to complete the sale or cancel it. The bank says that the cars are in its ownership. Once the sale is completed, the cars become the property of this man, and he may sell them or use them. What is the ruling on this transaction, given that the man’s intention is to obtain cash, i.e., tawarruq?
The Shaykh:
It is not permissible for anyone, neither the bank nor anyone else, to sell something unless it is in their possession. If the bank has cars or goods in its possession that you can buy from, and they are present at the time of the contract, there is no harm. But if they send you to people’s showrooms, or send you to companies that have the goods and cars.
This is not permissible. This is selling what they do not own. Even if they say it is a promise to purchase, even if they say he has the option, and even if they say all this is for the sake of advertising, if they are serious about the Sharia-compliant transaction, they should stock the goods in their stores. They should stock the goods, and when someone comes to buy, they sell to him.
Then the borrower must take the goods, take the car, take the goods, and remove them from their place. He sells them in the market to others, not to them. He sells them in the market to others and benefits from the price. This is the issue of tawarruq that is permitted by the majority of scholars.
As for this manipulation and these sweet words, they want to use them to cover up the transaction they are engaged in. This is never acceptable. Yes.
The presenter:
May Allah reward you. Honorable Shaykh, and this questioner says: What is the ruling on…
The Shaykh:
It consists of two conditions. The first condition is that the goods they want to sell to the customers must be in their possession. So that when the customer comes, he finds them and buys them from them. The second condition is that the customer must take them out of their place and sell them in another place to someone else. He benefits from the price. Yes.
The presenter:
May Allah reward you
Honorable Shaykh, this questioner says: A man wants to buy cars on installment through one of the banks. The form of this transaction is that you have an account with this bank, then you submit an application to buy the cars or other items you want. The bank deals with three showrooms. If the bank approves your request, you go to one of these three showrooms and select the desired cars, then you submit an invoice from the showroom to the bank. The bank then buys these cars, and the buyer gives a promise to purchase, with a period of fifteen days during which this man has the option to complete the sale or cancel it. The bank says that the cars are in its ownership. Once the sale is completed, the cars become the property of this man, and he may sell them or use them. What is the ruling on this transaction, given that the man’s intention is to obtain cash, i.e., tawarruq?
The Shaykh:
It is not permissible for anyone, neither the bank nor anyone else, to sell something unless it is in their possession. If the bank has cars or goods in its possession that you can buy from, and they are present at the time of the contract, there is no harm. But if they send you to people’s showrooms, or send you to companies that have the goods and cars.
This is not permissible. This is selling what they do not own. Even if they say it is a promise to purchase, even if they say he has the option, and even if they say all this is for the sake of advertising, if they are serious about the Sharia-compliant transaction, they should stock the goods in their stores. They should stock the goods, and when someone comes to buy, they sell to him.
Then the borrower must take the goods, take the car, take the goods, and remove them from their place. He sells them in the market to others, not to them. He sells them in the market to others and benefits from the price. This is the issue of tawarruq that is permitted by the majority of scholars.
As for this manipulation and these sweet words, they want to use them to cover up the transaction they are engaged in. This is never acceptable. Yes.
The presenter:
May Allah reward you. Honorable Shaykh, and this questioner says: What is the ruling on…
The Shaykh:
It consists of two conditions. The first condition is that the goods they want to sell to the customers must be in their possession. So that when the customer comes, he finds them and buys them from them. The second condition is that the customer must take them out of their place and sell them in another place to someone else. He benefits from the price. Yes.
The presenter:
May Allah reward you
Source
75-اللقاء الأسبوعي مع الشيخ صالح الفوزان - 29 — archive.org (1:00:56)
The Arabic text is a machine transcription of the audio recording.