Some car dealerships rent you a car for a fixed monthly fee for a specific period, after which they transfer ownership of the car to you.
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The questioner : He says: May the Shaykh be respected, some car dealerships rent a car for a fixed monthly fee for a specific period, after which they transfer ownership of the car to you. You benefit from using this car until the end of the period, and then the car is registered in your name. If you delay paying the rent, even for a short time, they take the car back from you, even if only one month remains before the transfer of ownership. What is the ruling on this?
The Shaykh : We see that this transaction is forbidden. It is not a valid transaction; it is a defective transaction. If we consider it a case of suspending the sale, then suspending the sale is invalid according to the school of Imam Ahmad. If we consider it a binding contract, how can the one who bought it be considered a buyer while being charged a rental fee? This is a contradiction. A person cannot rent out his own property. If he is the owner, no one is entitled to a rental fee from him. Therefore, we see that this contract is forbidden and defective, and that the one who entered into it should annul it to the extent he is able. Yes.
The Shaykh : We see that this transaction is forbidden. It is not a valid transaction; it is a defective transaction. If we consider it a case of suspending the sale, then suspending the sale is invalid according to the school of Imam Ahmad. If we consider it a binding contract, how can the one who bought it be considered a buyer while being charged a rental fee? This is a contradiction. A person cannot rent out his own property. If he is the owner, no one is entitled to a rental fee from him. Therefore, we see that this contract is forbidden and defective, and that the one who entered into it should annul it to the extent he is able. Yes.