The Difference Between Tawarruq and Riba al-'Inah in Car Purchases
Machine translationRead the Arabic original
Question:
He says: Honorable Shaykh, may Allah grant you success, I want to build a house for myself, but I do not have a sufficient amount of money. He says: I want to build a house for myself, but I do not have a sufficient amount of money, so I found one of my colleagues selling me cars, or I buy cars from him, then I sell them, and I benefit from their price. I also found this at the banks in the same way, knowing that he owns these cars. What is the ruling on this, since some people said that this is riba al-'inah?
Answer:
No, this is not riba al-'inah. This is what people understand as 'inah. This is the issue of tawarruq, and the majority of scholars have stated its permissibility. As for 'inah, no one has stated its permissibility except a very few. It is when you buy a commodity for a deferred price, then you sell it to the one who sold it to you for a lower price. This is the issue of 'inah, because this is clear riba. You sell it to the one who sold it to you, and you owe him a lower price. This is the issue of 'inah. This is riba, and it is not permissible. There is a difference between 'inah and tawarruq. Yes.
He says: Honorable Shaykh, may Allah grant you success, I want to build a house for myself, but I do not have a sufficient amount of money. He says: I want to build a house for myself, but I do not have a sufficient amount of money, so I found one of my colleagues selling me cars, or I buy cars from him, then I sell them, and I benefit from their price. I also found this at the banks in the same way, knowing that he owns these cars. What is the ruling on this, since some people said that this is riba al-'inah?
Answer:
No, this is not riba al-'inah. This is what people understand as 'inah. This is the issue of tawarruq, and the majority of scholars have stated its permissibility. As for 'inah, no one has stated its permissibility except a very few. It is when you buy a commodity for a deferred price, then you sell it to the one who sold it to you for a lower price. This is the issue of 'inah, because this is clear riba. You sell it to the one who sold it to you, and you owe him a lower price. This is the issue of 'inah. This is riba, and it is not permissible. There is a difference between 'inah and tawarruq. Yes.
Source
شرح كتاب المنتقى من أخبار المصطفى صلى الله عليه وسلم، بداية من أبواب موجبات الغسل — islamhouse.com (1:13:41)
The Arabic text is a machine transcription of the audio recording.