Ruling on a man selling what he does not have on an installment basis
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His Eminence the Shaykh: I submitted an application to one of the companies to buy a car on an installment basis. They informed me of the installment amount and the down payment, and told me that if the car is not available, they will buy it and then sell it to me on an installment basis. They also told me that if I change my mind about wanting it, I have the right to withdraw from the purchase, but only after a certain period. They informed me that the matter is concluded as if they had already bought it.So I asked them if it was written in the company's name, and they said: No.
All you have to do is show up, take the papers, and register it in your name with the traffic department. They told me that the car may have already arrived at a dealership they work with, or it may not have arrived yet. So I do not know if this method is lawful or not? And what is the lawful method?
First: If the car is not with the seller, but he sold you a car on the condition that he will buy it for you and then sell it to you, then this is forbidden and not permissible, unless he sells it to you at its cost price, in which case there is no harm; because there is no riba (usury or interest) if he sells it at its cost price.
However, if he sells it to you for a profit, then this profit is riba (usury or interest), but it is not explicit riba; rather, it is riba wrapped in the form of a contract that is not intended; for the seller did not intend to buy it for himself in the first place, but intended to buy it for you. Thus, it is like lending you the amount with an increase, and this is riba itself.
As for if the item is available with the seller and he says: This car, we sell it for forty thousand cash, and if you want it on an installment basis, we sell it to you for fifty thousand; if you accept, there is no harm, provided you intend to use the car.
But if you intend to sell it to benefit from its price, this is a matter the scholars call (the issue of tawarruq) and there is disagreement among the scholars regarding it,Some of them permitted it, and some said: that it is not permissible.
But if it is not with them, then this is forbidden and not permissible; because this is selling what one does not own, and because buying it is a formal purchase that is not intended, and what is intended is the riba (usury or interest) they take. The evidence for this is also what you mentioned, that they say: We will write it in your name from the dealership, and we will not write it in our name. This is very clear that they did not want it, even if the seller wrote it in his name and then transferred it to you, it is the same thing.
As for the statement of some of them: I do not bind you to the car; if you wish, leave it. This is empty talk;Because the man did not come to say: I want a specific car, and then he withdraws completely.
So what we see is that this method is forbidden, and if you want an alternative, go to a dealer who has cars and say to him: I want you to sell me this car for fifty thousand on an installment basis, and I will bring you a guarantor who will pay you the price when the due date arrives, and if you wish, I will also pledge the car, and thus you will be safe from these ruses.
All you have to do is show up, take the papers, and register it in your name with the traffic department. They told me that the car may have already arrived at a dealership they work with, or it may not have arrived yet. So I do not know if this method is lawful or not? And what is the lawful method?
First: If the car is not with the seller, but he sold you a car on the condition that he will buy it for you and then sell it to you, then this is forbidden and not permissible, unless he sells it to you at its cost price, in which case there is no harm; because there is no riba (usury or interest) if he sells it at its cost price.
However, if he sells it to you for a profit, then this profit is riba (usury or interest), but it is not explicit riba; rather, it is riba wrapped in the form of a contract that is not intended; for the seller did not intend to buy it for himself in the first place, but intended to buy it for you. Thus, it is like lending you the amount with an increase, and this is riba itself.
As for if the item is available with the seller and he says: This car, we sell it for forty thousand cash, and if you want it on an installment basis, we sell it to you for fifty thousand; if you accept, there is no harm, provided you intend to use the car.
But if you intend to sell it to benefit from its price, this is a matter the scholars call (the issue of tawarruq) and there is disagreement among the scholars regarding it,Some of them permitted it, and some said: that it is not permissible.
But if it is not with them, then this is forbidden and not permissible; because this is selling what one does not own, and because buying it is a formal purchase that is not intended, and what is intended is the riba (usury or interest) they take. The evidence for this is also what you mentioned, that they say: We will write it in your name from the dealership, and we will not write it in our name. This is very clear that they did not want it, even if the seller wrote it in his name and then transferred it to you, it is the same thing.
As for the statement of some of them: I do not bind you to the car; if you wish, leave it. This is empty talk;Because the man did not come to say: I want a specific car, and then he withdraws completely.
So what we see is that this method is forbidden, and if you want an alternative, go to a dealer who has cars and say to him: I want you to sell me this car for fifty thousand on an installment basis, and I will bring you a guarantor who will pay you the price when the due date arrives, and if you wish, I will also pledge the car, and thus you will be safe from these ruses.