Forms of Sale in Car Showrooms
Machine translationRead the Arabic original
The third question of Fatwa No. ( 11170 )
Q3: I am the owner of a showroom that deals in buying and selling used cars. I have a group of relatives, each of whom brings a sum of money and asks me to cover the amount if he wants to buy cars for more than his amount. In return, I take a sum estimated at three hundred riyals or more for each car he buys, knowing that if he does not pay three hundred or more for each car, I cannot pay the value on his behalf. Is this transaction permissible in the Shari'ah? Knowing that the amount I take, as the showroom owner, I consider to be the fee for brokering the car and handling the sale contract.
A3: First: If your relative buys a car and asks you to cover the amount from your own funds, this falls under the category of a loan. If you wish, you may lend it to him, and if you wish, you may refuse. It is not permissible to take interest on the loan, because that is riba (usury or interest).
Second: Taking a specific sum of money in exchange for handling the sale contract or brokering is permissible according to the agreement. And success is from Allah, and may Allah send prayers and blessings upon our Prophet Muhammad, his family, and his Companions.
Q3: I am the owner of a showroom that deals in buying and selling used cars. I have a group of relatives, each of whom brings a sum of money and asks me to cover the amount if he wants to buy cars for more than his amount. In return, I take a sum estimated at three hundred riyals or more for each car he buys, knowing that if he does not pay three hundred or more for each car, I cannot pay the value on his behalf. Is this transaction permissible in the Shari'ah? Knowing that the amount I take, as the showroom owner, I consider to be the fee for brokering the car and handling the sale contract.
A3: First: If your relative buys a car and asks you to cover the amount from your own funds, this falls under the category of a loan. If you wish, you may lend it to him, and if you wish, you may refuse. It is not permissible to take interest on the loan, because that is riba (usury or interest).
Second: Taking a specific sum of money in exchange for handling the sale contract or brokering is permissible according to the agreement. And success is from Allah, and may Allah send prayers and blessings upon our Prophet Muhammad, his family, and his Companions.
Source
www.alifta.gov.sa
The Arabic text is copied verbatim from the original source, without any edits.