Some people agree with banks on installments, then after signing the contract, they buy a car for them and this person offers it for sale
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The questioner : He says: May the Shaykh be respected, some people agree with banks on installments. Then after signing the contract, they buy a car for them and this person offers it for sale. Is it permissible to buy this car from him in cash? And may Allah reward you with good.
The Shaykh : The original of this transaction is forbidden, meaning: it is forbidden for a person to come to the bank or the merchant and say: I want such-and-such a car, buy it for me. Then sell it to me on installments for a higher price. This is forbidden. This, by Allah, is a ruse to commit riba (usury or interest), and it is uglier than if he came to the bank and said: Give me fifty thousand riyals, and it is owed to me as sixty thousand riyals for a year. Both are forbidden. But the latter is milder, because the latter is explicit riba (usury or interest), and the person in it has not followed the path of the hypocrites. As for the former, he is deceiving Allah (Mighty and Majestic); this bank did not buy the car except for your sake, so it is as if it lent you its value with an increase. So let the believer beware of this transaction, let him fear his Lord, and let him know that Allah knows the treachery of the eyes and what the breasts conceal, and that the criterion in contracts is their meanings, not their forms.
And with this, this meeting ends, and until a future meeting if Allah wills.
And all praise is due to Allah, Lord of the worlds, and may Allah send prayers and blessings upon our Prophet Muhammad and upon his family and all his Companions.
The questioner : May Allah reward our respected Shaykh with the best reward, and may Allah send prayers, blessings, and peace upon His servant and His Messenger Muhammad.
The Shaykh : The original of this transaction is forbidden, meaning: it is forbidden for a person to come to the bank or the merchant and say: I want such-and-such a car, buy it for me. Then sell it to me on installments for a higher price. This is forbidden. This, by Allah, is a ruse to commit riba (usury or interest), and it is uglier than if he came to the bank and said: Give me fifty thousand riyals, and it is owed to me as sixty thousand riyals for a year. Both are forbidden. But the latter is milder, because the latter is explicit riba (usury or interest), and the person in it has not followed the path of the hypocrites. As for the former, he is deceiving Allah (Mighty and Majestic); this bank did not buy the car except for your sake, so it is as if it lent you its value with an increase. So let the believer beware of this transaction, let him fear his Lord, and let him know that Allah knows the treachery of the eyes and what the breasts conceal, and that the criterion in contracts is their meanings, not their forms.
And with this, this meeting ends, and until a future meeting if Allah wills.
And all praise is due to Allah, Lord of the worlds, and may Allah send prayers and blessings upon our Prophet Muhammad and upon his family and all his Companions.
The questioner : May Allah reward our respected Shaykh with the best reward, and may Allah send prayers, blessings, and peace upon His servant and His Messenger Muhammad.