What is the ruling on deferred sale and installment payments with an increase?
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The questioner : Well; I heard regarding the question about deferred sale in the method of selling cars, that when a car comes from abroad, the Ministry of Commerce takes the car and adds fifteen percent on top of it, plus the customs duties, and the price comes out to, for example, ninety thousand riyals. So they write in what is called the customs card that this car is not allowed to be sold by its owner or the dealership that bought it for more than ninety thousand riyals. The owners of the dealerships do something where they give discounts from the fifteen percent that the Ministry of Commerce allowed them, so some of them sell the car for eighty-five thousand in order to sell a larger quantity of cars. Now, on the basis that they are closing the door from the side of deferred sale, they do something: the one who requests deferred payment does not get a discount, and the one who pays cash gets a discount. What do you say about this?
The Shaykh : If the ministry is not colluding with the traders, because it appears that there is a game being played, then if we assume that the ministry is not colluding and in agreement with the traders to sell at two prices, a cash price and an installment price; meaning: the ministry set the installment price for the car, and then the traders sell at both prices, the installment price which is the government price, and the cash price which is their price. If there is no agreement between the traders and the ministry—and this is very unlikely—it is permissible for the trader to sell any goods he has, even at cost, even at less than cost, or even without any profit; there is no problem with that. But the problem is the deception; they want to deceive regarding taking the increase, so they say that the ministry set a price for this goods at such-and-such, so they sell it for less in cash, and at the same price on installments; and this means—in my view, and Allah knows best—that the installment price is the one set by the ministry.
The questioner : The ministry has a law where they look at the price the car came in from abroad and add fifteen percent profit to it, without mentioning installments or anything; they have no relation to it at all.
The Shaykh : It is not important, my brother, that they mention it.
The questioner : I mean, they have an opportunity for collusion; because they originally consider deferred sale to be permissible based on the fatwa you mentioned, so they consider it permissible; so there is no real opportunity for collusion on their part for there to be a conspiracy.
The Shaykh : This is the opportunity, may Allah guide you.
The questioner : There is a need for what they call the customs card.
The Shaykh : This is the opportunity: they raise the price so that the trader lowers it in cash.
The questioner : This has been the case for a long time, Shaykh, before the issue of deferred sale appeared.
The Shaykh : Shaykh, may Allah bless you, the issue does not need discussion; the increase in exchange for a delay is forbidden, and deceiving regarding it is even more forbidden, if there is...
The questioner : This is one of the faces of deception, do you see?
The Shaykh: Yes.
The questioner : May Allah reward you with good.
The Shaykh : And beware of that.
The Shaykh : If the ministry is not colluding with the traders, because it appears that there is a game being played, then if we assume that the ministry is not colluding and in agreement with the traders to sell at two prices, a cash price and an installment price; meaning: the ministry set the installment price for the car, and then the traders sell at both prices, the installment price which is the government price, and the cash price which is their price. If there is no agreement between the traders and the ministry—and this is very unlikely—it is permissible for the trader to sell any goods he has, even at cost, even at less than cost, or even without any profit; there is no problem with that. But the problem is the deception; they want to deceive regarding taking the increase, so they say that the ministry set a price for this goods at such-and-such, so they sell it for less in cash, and at the same price on installments; and this means—in my view, and Allah knows best—that the installment price is the one set by the ministry.
The questioner : The ministry has a law where they look at the price the car came in from abroad and add fifteen percent profit to it, without mentioning installments or anything; they have no relation to it at all.
The Shaykh : It is not important, my brother, that they mention it.
The questioner : I mean, they have an opportunity for collusion; because they originally consider deferred sale to be permissible based on the fatwa you mentioned, so they consider it permissible; so there is no real opportunity for collusion on their part for there to be a conspiracy.
The Shaykh : This is the opportunity, may Allah guide you.
The questioner : There is a need for what they call the customs card.
The Shaykh : This is the opportunity: they raise the price so that the trader lowers it in cash.
The questioner : This has been the case for a long time, Shaykh, before the issue of deferred sale appeared.
The Shaykh : Shaykh, may Allah bless you, the issue does not need discussion; the increase in exchange for a delay is forbidden, and deceiving regarding it is even more forbidden, if there is...
The questioner : This is one of the faces of deception, do you see?
The Shaykh: Yes.
The questioner : May Allah reward you with good.
The Shaykh : And beware of that.
Source
www.al-albany.com
The Arabic text is copied verbatim from the original source, without any edits.