The Shaykh was asked about a man who sells on installment for less than the cash price; is this transaction valid?

The questioner : The first question: If a merchant sells goods at different prices, either cash or on credit, is it permissible for him to record the debt at a higher price or a lower price?

The Shaykh : What do you mean by the debtor? Do you mean he wants to buy on credit?
Abu Layla : Yes, he wants to buy on credit. He sells cash or on installment at different prices. For example, the cash price is limited to one dinar, and the installments are one dinar and twenty, but he sells this for one dinar and ninety, or one and a half. So a friend comes to him; does he record the item for him at the higher price or the lower price?

The Shaykh : Well, regarding the installment price and the cash price, didn't we say that there does not have to be a difference between the two prices?
Abu Layla : Yes.

The Shaykh : Well, so he sells to some people on installment at a price lower than what he sells to some people for cash.
Abu Layla : Of course, that is possible, my teacher.

The Shaykh : The answer "it is possible" may not satisfy me; "possible" does not fill me. No, is this a reality? Is this a reality?
Abu Layla : It is a reality, my teacher.

The Shaykh : Why?
Abu Layla : Let me give you an example, my teacher.

The Shaykh : No, but answer my question; do not give me an example. How does it happen that a person sells to someone for cash at a higher price than he sells to another person on installment?
Abu Layla : Because, our teacher, he does not have fixed prices.
Abu Yahya: I am giving...

The Shaykh : You, Abu Yahya, it is not permissible for you to give [an example], because when you were speaking, your friend was not speaking...
Abu Layla : I can sell, my Shaykh, at a lower price on the ledger...

The questioner : ...upbringingThe Shaykh : That is how it came out...

The Shaykh : What? I did not understand the reason. The installment buyer you sell to him less than the cash buyer; you took an extra amount from the cash buyer. Why?
Abu Layla : Because the price is not fixed, so I take an extra amount.

The Shaykh : We told you an hour ago: Why did you take an extra amount from the cash buyer over the installment price?

The questioner : ...

The Shaykh : My brother, I am asking you about your intention, not about the action.
Abu Layla : My teacher, there is no intention; I just want to reduce the profit from this one compared to that one.

The Shaykh : Well, this motive is profit. Why do you not profit from the installment buyer? Here, the motive of profit is stronger. Therefore, people today who do not adhere to the Shari'ah take more from the installment buyer. So what drove you to do the opposite? There must be something. So that we can say whether it is permissible or not, we need to know the motive. What drove you to take more from the cash buyer? Practically, I do not think this happens.
Abu Layla : I have an image that I can mention for you.

The Shaykh : My brother, I do not want images. Do not tire yourself. Tell me, what is the motive when you say profit? This answer does not convince any person. Why? Because profit exists in both cases: in the cash sale and in the installment sale.
Abu Layla : Let me mention the reason.

The Shaykh : Please, what am I asking you?
Abu Layla : Some customers came to me, my teacher...

The Shaykh : I do not want an example.
Abu Layla : If you hear the example from me...

The Shaykh : No, my dear, no. Because the example... be patient, Abu Yahya. It has been an hour since you have been speaking. Rest now. The image you are talking about, listen, may Allah guide you, the image you want to talk about is an action, right? I am not asking about the action; I am asking about what is in the heart. What drove you to take more from the one you sold to for cash than from the one you sold to on installment? What is the motive for that? Even though it is known by custom among people, and those who do not know the ruling of the Shari'ah, or who know it and distort it, do the opposite: they are lenient with the one who buys for cash and strict with the one who buys on installment. I am asking now about the motive, which is a matter of the heart. You want to talk about an example and an example and an example.

The questioner : The motive might be one... it might be

The Shaykh : And it might not be. It does not benefit you, Abu Yahya. You just say "it might be," and it is countered by "it might not be." So at that point, allow me a moment. The point is understanding. When you say "it might be so," I tell you, by your admission of the "might," it might be otherwise. So I hold onto this. I hold onto the "otherwise." Talk to me about the "otherwise," do not talk to me about "it might be." Who is my partner? Bring one who is not your partner.

The questioner : ...

The Shaykh : But. Look, this is it. This is the heart of the matter that we are afraid of exactly.
Abu Yahya: ...cheaper on installment because he deals with me a lot

The Shaykh : Oh, Abu Yahya, do not blame me. Ali, oh Haman, allow me a moment to clarify the word. I have set a goal; I want to profit ten percent. It has to be, generally, I sold for cash and profited fifteen percent, good. And I sold on installment for five percent. What drove me to sell for cash at fifteen percent and take profit from him? It has to be...
Abu Yahya: ...he came to me twice...

The Shaykh : He came to you twice; this motive is the problem. My dear, give me the motive, the intention.

The questioner : A strong, respectable customer came to him...

The Shaykh : You mean he flattered him?

The questioner : No, his character... and it occurred to him to honor him...

The Shaykh : You went back to greet Abu Yahya. He took the opposite image.

The questioner : ...

The Shaykh : Yes. I gave an example for clarification. My general principle is to take a ten percent profit. I sell to the installment buyer on the basis of profiting five percent, and the one who wants to buy from me for cash, fifteen percent... What drives him to this transaction? In conclusion, my brother, I fear that the work of Satan enters into this matter, because this situation is not normal at all.

The questioner : It is illogical.

The Shaykh : I told you this action is not normal: that you take more from the cash buyer than from the installment buyer.

The questioner : Its logic is illogical...

The Shaykh : It is truly illogical.

The questioner : It is not reasonable...

The Shaykh : Abu Yahya, I think you forgot the image our brother Abu Ahmad asked about here: one buys on installment and it is recorded for him like this, and for cash it is recorded for him with an increase. How is it?
Abu Layla : Sometimes, my teacher, it is present in the cash... and the opposite... it happens

The Shaykh : There is no disagreement in this now.

The questioner : The example given is not normal and not logical.

The Shaykh : Never.

The questioner : Either the second form that Adnan mentioned, if he knows a person's situation and lowers [the price] and says to you: after five months...

The Shaykh : And you gave an example of how you bought the car, but buying a car is different from all the topics. It became a scholarly research and forbidden, so that the man sold me at the cash price. This is directly cash like this and installment like this, as he lowers it. And the opposite of today's commercial logic, may Allah help you, when you take the stage with your repeated speech, no one objects to you.

The questioner : I am patient and I did not object.

The Shaykh : And the reward for kindness is nothing but kindness; they were patient with you.