The ruling on buying a car and then selling it on installment
Machine translationRead the Arabic original
Question:
Honorable Shaykh, may Allah grant you success. A man wants to buy a car but does not have the price for it. So a man said to him, “I will buy it and then sell it to you on installment.” Is that permissible?
Answer:
If he bought it for the customer, meaning he did not buy it for himself but for the customer, and he pays the price on behalf of the customer as a loan and then takes back more, then that is riba (usury or interest) and is not permissible. But if he bought it for himself, not for the customer, and he owns it and takes possession of it, then it is permissible for him to sell it to the customer. Yes.
Honorable Shaykh, may Allah grant you success. A man wants to buy a car but does not have the price for it. So a man said to him, “I will buy it and then sell it to you on installment.” Is that permissible?
Answer:
If he bought it for the customer, meaning he did not buy it for himself but for the customer, and he pays the price on behalf of the customer as a loan and then takes back more, then that is riba (usury or interest) and is not permissible. But if he bought it for himself, not for the customer, and he owns it and takes possession of it, then it is permissible for him to sell it to the customer. Yes.
Source
شرح كتاب المنتقى من أخبار المصطفى صلى الله عليه وسلم، بداية من باب الوضوء بالخارج من السبيل — islamhouse.com (48:17)
The Arabic text is a machine transcription of the audio recording.