A car dealer sells a car without a license plate or registration, and then the buyer sells it on credit before taking possession of it
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The second question of Fatwa No. ( 16014 )
Q2: We have car dealers who sell cars without a license plate or registration, new cars, and then the buyer purchases it with the intention of selling it on credit to a third person. Then the car dealer buys the car back from the third person, and the car is still in the showroom and has not moved. What is the ruling?
A2: Whoever buys a commodity, such as a car or anything else, for a price that is immediate or deferred, it is not permissible for him to sell it until he takes full possession of it, and the manner of taking possession varies according to the item. Taking possession of a car is achieved by holding it and removing it from the seller’s premises. If it was bought for a deferred price, it is not permissible for him to sell it to the
seller for less than what he paid for it; because that is one of the usurious transactions, namely the buy-back sale (‘inah) which is prohibited in the hadith narrated by Abu Dawud , from Ibn ‘Umar (may Allah be pleased with them both), who said: I heard the Messenger of Allah (peace and blessings be upon him) say:Sunan Abi Dawud 3462Sahih (Al-Albani), and it is also not permissible to sell the car before its official procedures are completed, such as obtaining the registration and the license plate; because its possession is not complete until that is done.
Q2: We have car dealers who sell cars without a license plate or registration, new cars, and then the buyer purchases it with the intention of selling it on credit to a third person. Then the car dealer buys the car back from the third person, and the car is still in the showroom and has not moved. What is the ruling?
A2: Whoever buys a commodity, such as a car or anything else, for a price that is immediate or deferred, it is not permissible for him to sell it until he takes full possession of it, and the manner of taking possession varies according to the item. Taking possession of a car is achieved by holding it and removing it from the seller’s premises. If it was bought for a deferred price, it is not permissible for him to sell it to the
seller for less than what he paid for it; because that is one of the usurious transactions, namely the buy-back sale (‘inah) which is prohibited in the hadith narrated by Abu Dawud , from Ibn ‘Umar (may Allah be pleased with them both), who said: I heard the Messenger of Allah (peace and blessings be upon him) say:
When you enter into the inah transaction, hold the tails of oxen, are pleased with agriculture, and give up conducting jihad (struggle in the way of Allah). Allah will make disgrace prevail over you, and will not withdraw it until you return to your original religion.
إذا تبايعتم بالعينة، وأخذتم أذناب البقر، ورضيتم بالزرع، وتركتم الجهاد، سلط الله عليكم ذلاًّ لا ينزعه حتى ترجعوا إلى دينكم
Source
www.alifta.gov.sa
The Arabic text is copied verbatim from the original source, without any edits.