Buying a car from a showroom and selling it before transferring ownership
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The first and second questions of Fatwa No. ( 6543 )
Q1: I am a man, and my profession is buying and selling cars, and I sell them on credit. However, some car buyers ask me to put the
car in their name, knowing that I am the one who buys it from the showroom, but they do not want the car in anyone’s name except their own. Others ask me to buy the car for them so that it is not written in my name or theirs; the purpose is that if they want to sell it, it will be inside the showroom, without papers. Your Eminence: I buy all these types of cars with my own money, without any advance payment from the buyers to me. I hope Your Eminence will inform us: Is this sale lawful for me or not?
A1: If you buy the car from the showroom, for example, in your name, then take possession of it and take it away, and then sell it to another person for cash or on credit, even at a price higher than what you bought it for, it is permissible. It is not permissible for you to write it in his name as if he bought it from the showroom; because of the lying involved in that, and because of the other problems that may result from it. And if you did not take possession of it from the showroom, for example, and did not take it away, your sale of it to another person is not valid, neither for cash nor on credit, even at the same price you bought it for; because the Prophet (peace and blessings be upon him) forbade selling goods until they are taken possession of and taken away.
Q1: I am a man, and my profession is buying and selling cars, and I sell them on credit. However, some car buyers ask me to put the
car in their name, knowing that I am the one who buys it from the showroom, but they do not want the car in anyone’s name except their own. Others ask me to buy the car for them so that it is not written in my name or theirs; the purpose is that if they want to sell it, it will be inside the showroom, without papers. Your Eminence: I buy all these types of cars with my own money, without any advance payment from the buyers to me. I hope Your Eminence will inform us: Is this sale lawful for me or not?
A1: If you buy the car from the showroom, for example, in your name, then take possession of it and take it away, and then sell it to another person for cash or on credit, even at a price higher than what you bought it for, it is permissible. It is not permissible for you to write it in his name as if he bought it from the showroom; because of the lying involved in that, and because of the other problems that may result from it. And if you did not take possession of it from the showroom, for example, and did not take it away, your sale of it to another person is not valid, neither for cash nor on credit, even at the same price you bought it for; because the Prophet (peace and blessings be upon him) forbade selling goods until they are taken possession of and taken away.
Source
www.alifta.gov.sa
The Arabic text is copied verbatim from the original source, without any edits.