Sale for a price payable in installments, some due immediately and some deferred
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Fatwa No. ( 16747 ):
Q: A- We sell some cars to buyers on installment, and we agree with them that the installment price of the car is a certain amount, with a down payment of a certain amount, and the remainder recorded in monthly installment bills. However, the buyer agrees with us that he does not have the down payment, but will pay it from the value of the car after selling it to one of the merchants outside the showroom. Is there anything forbidden in this or not? B- We sell the car to the buyer on installment, and after completing the installment procedures, he sells it to one of the merchants outside the showroom, and the second one, in turn, after obtaining a profit, sells it to another merchant. If there is no prior agreement, do we, the owners of the showroom, have the right to buy the car back after it has passed through one or more buyers? C- Some installment buyers do not like to show themselves, so they ask us to offer the car for sale to them for cash. Do we have the right to sell it on their behalf and receive the amount from the buyer outside the showroom? Please inform us, may Allah reward you with good.
A: After the Committee studied the aforementioned inquiry, it answered as follows:
Regarding the first part of the question, which is: What is the ruling on selling a car for a price in installments, where the first installment is paid immediately and the remaining installments are deferred, and then the buyer sells it to another person and pays the first installment from its value, while the remaining installments remain a debt in his liability until their due dates? There is no harm in this religiously, if Allah wills. However, it is not permissible for you to conclude the contract with the buyer or negotiate with him regarding the value until you have full ownership of the car and have taken possession of it from the one who sold it to you. Regarding the second part, which is: What is the ruling on your purchasing the item from someone other than the one who borrowed it from you? There is no harm in this either, provided there is no mutual agreement between you regarding this. Regarding the third part, which is: If a person borrows an item from you for a deferred price, and then appoints you as his agent to sell it to him from someone else, there is no harm in this if the borrower has taken full possession of the item after purchasing it. And Allah knows best.
Q: A- We sell some cars to buyers on installment, and we agree with them that the installment price of the car is a certain amount, with a down payment of a certain amount, and the remainder recorded in monthly installment bills. However, the buyer agrees with us that he does not have the down payment, but will pay it from the value of the car after selling it to one of the merchants outside the showroom. Is there anything forbidden in this or not? B- We sell the car to the buyer on installment, and after completing the installment procedures, he sells it to one of the merchants outside the showroom, and the second one, in turn, after obtaining a profit, sells it to another merchant. If there is no prior agreement, do we, the owners of the showroom, have the right to buy the car back after it has passed through one or more buyers? C- Some installment buyers do not like to show themselves, so they ask us to offer the car for sale to them for cash. Do we have the right to sell it on their behalf and receive the amount from the buyer outside the showroom? Please inform us, may Allah reward you with good.
A: After the Committee studied the aforementioned inquiry, it answered as follows:
Regarding the first part of the question, which is: What is the ruling on selling a car for a price in installments, where the first installment is paid immediately and the remaining installments are deferred, and then the buyer sells it to another person and pays the first installment from its value, while the remaining installments remain a debt in his liability until their due dates? There is no harm in this religiously, if Allah wills. However, it is not permissible for you to conclude the contract with the buyer or negotiate with him regarding the value until you have full ownership of the car and have taken possession of it from the one who sold it to you. Regarding the second part, which is: What is the ruling on your purchasing the item from someone other than the one who borrowed it from you? There is no harm in this either, provided there is no mutual agreement between you regarding this. Regarding the third part, which is: If a person borrows an item from you for a deferred price, and then appoints you as his agent to sell it to him from someone else, there is no harm in this if the borrower has taken full possession of the item after purchasing it. And Allah knows best.
Source
www.alifta.gov.sa
The Arabic text is copied verbatim from the original source, without any edits.