The ruling on selling cars and real estate by companies on installment before they own them

The questioner:
Honorable Shaykh, there are some companies that offer installments, whether for cars or real estate?

The Shaykh:
Some companies, what do they do?

The questioner:
They offer installments.

The Shaykh:
Installments, yes.

The questioner:
Whether for cars or real estate, the customer chooses the land or car he wants, and the company buys it and sells it to the customer on installments. What is the ruling on that?

The Shaykh:
The ruling on that is that it is not permissible unless the company already owns these items, whether cars, lands, or buildings, before the customer comes. Then the customer comes and they sell it to him for a deferred price. As for them agreeing with him when they have nothing, signing the contract and committing to it, and then going to buy it?
This is not permissible. The Prophet (peace and blessings be upon him) said: So they sold what they did not have, and this is selling a debt for a debt, which is not permissible. Yes, unless these goods are in their possession before the customer comes to them. When the customer comes to them, they agree with him and sell him what they have, and there is no harm in that. But if they are empty and have nothing, because they are going to buy it and they have no customer yet, fearing it will sit unsold with them. So when the customer comes to them, they agree with him, they buy it, they sign, and that is the end. Then they write a paper with him to the place where they deliver the car and register it in his name, or they do not send a representative with him to buy it and deliver it to him.
Do they buy it after they have sold it to him? Or do they tell him, "You go and choose what you want from the people who do not have it. Choose what you want from the people, and we will sell it to you"? No, that is not permissible. He is selling what he does not have.