Buying a car from a company on installment in another person's name and then selling it
Machine translationRead the Arabic original
Question:
Honorable Shaykh, may Allah grant you success. Is it permissible to have a person who used to apply to Al-Rajhi Company for installment sales, and who registered his name with them, take the car from them as if it were his? Then I would take it from him and sell it immediately because I need the money. After that, I would be the one to pay the installments due to Al-Rajhi Company on time. The reason for this arrangement is that the monthly income is less than the amount required to qualify for this sale. So my colleague volunteers to use his name with the company, while in reality I am the buyer and the one paying. Is this permissible?
Answer:
This is not permissible. It is not permissible to put the car in one person's name when it is actually in the name of another and owned by another. This is deception. However, it is possible for you to buy from Al-Rajhi or from another company and make this person, your colleague, a guarantor. You make him a guarantor or a surety who guarantees you or stands surety for you. There is nothing wrong with that. Guarantee and surety are permissible forms of documentation. But for you to deceive and make the division such that Al-Rajhi serves the person, while in reality the ownership belongs to you, this is not acceptable. Secondly, it is not permissible for Al-Rajhi or others to sell cars or anything else unless the goods are in their ownership before the contract. It is not permissible for them to say to a customer, "Go, find what you want and come to us with the invoice or the car's name, and we will go buy it and give it to you." This is not permissible. The goods, cars, and merchandise must be in the seller's ownership from the start, whether his own or others'. So when a customer comes, he says to him, "Look at the goods, choose what you want," and he buys it for a cash price or a deferred price. How?
Honorable Shaykh, may Allah grant you success. Is it permissible to have a person who used to apply to Al-Rajhi Company for installment sales, and who registered his name with them, take the car from them as if it were his? Then I would take it from him and sell it immediately because I need the money. After that, I would be the one to pay the installments due to Al-Rajhi Company on time. The reason for this arrangement is that the monthly income is less than the amount required to qualify for this sale. So my colleague volunteers to use his name with the company, while in reality I am the buyer and the one paying. Is this permissible?
Answer:
This is not permissible. It is not permissible to put the car in one person's name when it is actually in the name of another and owned by another. This is deception. However, it is possible for you to buy from Al-Rajhi or from another company and make this person, your colleague, a guarantor. You make him a guarantor or a surety who guarantees you or stands surety for you. There is nothing wrong with that. Guarantee and surety are permissible forms of documentation. But for you to deceive and make the division such that Al-Rajhi serves the person, while in reality the ownership belongs to you, this is not acceptable. Secondly, it is not permissible for Al-Rajhi or others to sell cars or anything else unless the goods are in their ownership before the contract. It is not permissible for them to say to a customer, "Go, find what you want and come to us with the invoice or the car's name, and we will go buy it and give it to you." This is not permissible. The goods, cars, and merchandise must be in the seller's ownership from the start, whether his own or others'. So when a customer comes, he says to him, "Look at the goods, choose what you want," and he buys it for a cash price or a deferred price. How?
Source
شرح بلوغ المرام من أدلة الأحكام [ صالح الفوزان ]، باب الشفعة — islamhouse.com (59:45)
The Arabic text is a machine transcription of the audio recording.