A brother purchased a car on installment, and the seller told him, "Take the car and drive it out of the shop; this is the legal possession, and we will sell it to you when someone comes to buy it."
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The questioner : A brother purchased a car on installment, and the seller told him, "Take the car and drive it out of the shop; this is the legal possession, and we will sell it to you when someone comes to buy it." I ask for guidance on this question. May Allah reward you.
The Shaykh : Praise be to Allah, Lord of the worlds, and I send prayers and peace upon our Prophet Muhammad, and upon his family and his Companions, and upon those who follow them in excellence until the Day of Judgment. Installment sales are of two types:
The first type is when the goods are in the possession of the seller, who owns them before the installment sale contract is made, and he sells them for a deferred price that is higher than the cash price. For example, a person has a car, and another person comes to buy it from him for a deferred price. The value of this car at the cash price is thirty thousand, and at the deferred price it is thirty-five thousand. The buyer purchases it for the deferred price of thirty-five thousand. This sale is permissible, as it falls under the general meaning of the saying of Allah the Exalted:[Al-Baqarah 2:282], and because this is similar to the salam that was practiced in the time of the Messenger of Allah (peace and blessings be upon him). However, in salam, the price is paid in advance and the goods are delivered later, whereas in this case, the goods are delivered in advance and the price is paid later. But the meaning is the same: the acceleration of one of the two exchanges and the deferral of the other.
However, the scholars differed on whether the buyer’s intention is to obtain money, but he uses this contract to achieve that. Some scholars, such as Shaykh al-Islam Ibn Taymiyyah (may Allah have mercy on him), prohibited this, saying: "This is a stratagem to commit riba."
Others permitted it, saying: "The buyer has the right to dispose of the goods as he wishes, whether by selling them or keeping them."
This issue is called the issue of tawarruq. Without a doubt, scrupulousness (wara') dictates avoiding dealing in it. However, if dire necessity (darurah) calls for it, and the buyer cannot find anyone to lend to him, and he cannot access the known salam of the time of the Prophet (peace and blessings be upon him), and he is compelled to do so, then with these three conditions, I hope there is no harm in it.
As for the second type of installment sale: it is when the goods are not in the possession of the seller, but the buyer specifies them. Then he goes to a merchant and says: "I want such-and-such goods; buy them for me and sell them to me for a deferred price higher than what you paid for them." For example, a buyer needs a car to use, and he finds it in a showroom but does not have the cash price for it. He goes to a merchant and says: "I want such-and-such car in such-and-such showroom, and I do not have the cash price." The merchant goes and buys this car for a cash price, then sells it to this requester for a deferred price higher than what he paid for it.
This type is a stratagem to commit riba and falls into the prohibited matter that exists in riba. This is because its reality is that the merchant has lent this requester the value of the goods he wants, with an increase. The well-known principle among the scholars of knowledge is: "Any loan that brings benefit to the lender is riba".
And because this contract issued by the merchant is not intended, for he did not buy these goods except after this requester came; he bought them for his sake, for the sake of the riba increase he obtains. The evidence for this is that the merchant would not have considered buying this car had this requester not come and proposed this deal to him.
The excuse of some that the merchant is not obligated to the requester if he buys it for him is a weak excuse. This is because it is known that the requester did not propose to the merchant to buy these goods for him except with the intention of owning them. If the merchant had a genuine doubt that this requester would not accept the goods after buying them, he would not have bought them for him. This is certain and known according to custom and according to the situation of this requester.
Therefore, I advise my Muslim brothers to avoid engaging in such contracts that appear permissible on the surface but whose intention leads to prohibition. Let them know that stratagems against the prohibitions of Allah do not turn them into lawful, but rather increase their impurity and their prohibition. This is because stratagems against the prohibitions of Allah involve two prohibited matters:
The first prohibited matter is falling into the meaning that Allah and His Messenger have forbidden.
And the second is deceiving Allah (Mighty and Majestic). Allah (Glorified and Exalted is He) is not confused by matters; He knows the treachery of the eyes and what the breasts conceal. And He (Glorified and Exalted is He) on the Day of Resurrection will punish people. Indeed, He (Glorified and Exalted is He) on the Day of Resurrection will hold people accountable for what is in their breasts, as Allah the Exalted said:[At-Tariq 86:8-9] meaning: the secrets will be tested. And He (Mighty and Majestic) said: [Al-'Adiyat 100:9-10].
And the sons of Adam will not benefit a person in any way. So even if he appears to them to be doing a permissible act, if the intention behind it is a forbidden thing, they will not benefit him from Allah in any way. Let the wise, intelligent believer know that the provision of Allah (Glorified and Exalted is He) is not attained through His sins, and that Allah (Glorified and Exalted is He) has decreed for the human being what His wisdom necessitated in eternity. So the rich is rich and the poor is poor. So let him fear Allah and be beautiful in his request, and not attain the provision of Allah the Exalted through His sins. Allah the Exalted says:[At-Talaq 65:2-3] And Allah the Exalted says: [At-Talaq 65:4]. I ask Allah the Exalted to protect us all from His sins and to guide us to what pleases Him.
The questioner : May Allah bless you, O honorable Shaykh.
The Shaykh : Praise be to Allah, Lord of the worlds, and I send prayers and peace upon our Prophet Muhammad, and upon his family and his Companions, and upon those who follow them in excellence until the Day of Judgment. Installment sales are of two types:
The first type is when the goods are in the possession of the seller, who owns them before the installment sale contract is made, and he sells them for a deferred price that is higher than the cash price. For example, a person has a car, and another person comes to buy it from him for a deferred price. The value of this car at the cash price is thirty thousand, and at the deferred price it is thirty-five thousand. The buyer purchases it for the deferred price of thirty-five thousand. This sale is permissible, as it falls under the general meaning of the saying of Allah the Exalted:
O you who have believed, when you contract a debt for a specified term, write it down.
يَا أَيُّهَا الَّذِينَ آمَنُوا إِذَا تَدَايَنتُمْ بِدَيْنٍ إِلَى أَجَلٍ مُسَمًّى فَاكْتُبُوهُHowever, the scholars differed on whether the buyer’s intention is to obtain money, but he uses this contract to achieve that. Some scholars, such as Shaykh al-Islam Ibn Taymiyyah (may Allah have mercy on him), prohibited this, saying: "This is a stratagem to commit riba."
Others permitted it, saying: "The buyer has the right to dispose of the goods as he wishes, whether by selling them or keeping them."
This issue is called the issue of tawarruq. Without a doubt, scrupulousness (wara') dictates avoiding dealing in it. However, if dire necessity (darurah) calls for it, and the buyer cannot find anyone to lend to him, and he cannot access the known salam of the time of the Prophet (peace and blessings be upon him), and he is compelled to do so, then with these three conditions, I hope there is no harm in it.
As for the second type of installment sale: it is when the goods are not in the possession of the seller, but the buyer specifies them. Then he goes to a merchant and says: "I want such-and-such goods; buy them for me and sell them to me for a deferred price higher than what you paid for them." For example, a buyer needs a car to use, and he finds it in a showroom but does not have the cash price for it. He goes to a merchant and says: "I want such-and-such car in such-and-such showroom, and I do not have the cash price." The merchant goes and buys this car for a cash price, then sells it to this requester for a deferred price higher than what he paid for it.
This type is a stratagem to commit riba and falls into the prohibited matter that exists in riba. This is because its reality is that the merchant has lent this requester the value of the goods he wants, with an increase. The well-known principle among the scholars of knowledge is: "Any loan that brings benefit to the lender is riba".
And because this contract issued by the merchant is not intended, for he did not buy these goods except after this requester came; he bought them for his sake, for the sake of the riba increase he obtains. The evidence for this is that the merchant would not have considered buying this car had this requester not come and proposed this deal to him.
The excuse of some that the merchant is not obligated to the requester if he buys it for him is a weak excuse. This is because it is known that the requester did not propose to the merchant to buy these goods for him except with the intention of owning them. If the merchant had a genuine doubt that this requester would not accept the goods after buying them, he would not have bought them for him. This is certain and known according to custom and according to the situation of this requester.
Therefore, I advise my Muslim brothers to avoid engaging in such contracts that appear permissible on the surface but whose intention leads to prohibition. Let them know that stratagems against the prohibitions of Allah do not turn them into lawful, but rather increase their impurity and their prohibition. This is because stratagems against the prohibitions of Allah involve two prohibited matters:
The first prohibited matter is falling into the meaning that Allah and His Messenger have forbidden.
And the second is deceiving Allah (Mighty and Majestic). Allah (Glorified and Exalted is He) is not confused by matters; He knows the treachery of the eyes and what the breasts conceal. And He (Glorified and Exalted is He) on the Day of Resurrection will punish people. Indeed, He (Glorified and Exalted is He) on the Day of Resurrection will hold people accountable for what is in their breasts, as Allah the Exalted said:
(8) Indeed, Allah, to return him [to life], is Able. (9) The Day when secrets will be put on trial,
إِنَّهُ عَلَى رَجْعِهِ لَقَادِرٌ * يَوْمَ تُبْلَى السَّرَائِرُ(9) But does he not know that when the contents of the graves are scattered (10) And that within the breasts is obtained,
أَفَلا يَعْلَمُ إِذَا بُعْثِرَ مَا فِي الْقُبُورِ * وَحُصِّلَ مَا فِي الصُّدُورAnd the sons of Adam will not benefit a person in any way. So even if he appears to them to be doing a permissible act, if the intention behind it is a forbidden thing, they will not benefit him from Allah in any way. Let the wise, intelligent believer know that the provision of Allah (Glorified and Exalted is He) is not attained through His sins, and that Allah (Glorified and Exalted is He) has decreed for the human being what His wisdom necessitated in eternity. So the rich is rich and the poor is poor. So let him fear Allah and be beautiful in his request, and not attain the provision of Allah the Exalted through His sins. Allah the Exalted says:
And whoever fears Allah - He will make for him a way out (3) And will provide for him from where he does not expect.
وَمَنْ يَتَّقِ اللَّهَ يَجْعَلْ لَهُ مَخْرَجًا * وَيَرْزُقْهُ مِنْ حَيْثُ لا يَحْتَسِبُAnd whoever fears Allah - He will make for him of his matter ease.
وَمَنْ يَتَّقِ اللَّهَ يَجْعَلْ لَهُ مِنْ أَمْرِهِ يُسْرًاThe questioner : May Allah bless you, O honorable Shaykh.