What is the ruling on the buy-back sale and also the commodity sale?
Machine translationRead the Arabic original
The questioner : What is the ruling on the buy-back sale, and I also ask about the commodity sale?
The Shaykh : The buy-back sale is when a person sells an item for a deferred price, then buys it back for a lower cash price. For example, he sells this car for sixty thousand deferred in installments, then goes back and buys it from its owner for forty thousand cash. This is the issue of the buy-back sale, and it is forbidden because it is a stratagem to obtain usury or interest in the form of a sale that is not intended. As for when the buyer sells it to another person for less than what he paid for it, seeking the cash, this is the issue of the commodity sale. The scholars have differed on this; some have classified it with the issue of the buy-back sale, while others have said: there is nothing wrong with it. The precaution is not to deal in it.
The questioner : May Allah reward you with good. He says.
The Shaykh : The buy-back sale is when a person sells an item for a deferred price, then buys it back for a lower cash price. For example, he sells this car for sixty thousand deferred in installments, then goes back and buys it from its owner for forty thousand cash. This is the issue of the buy-back sale, and it is forbidden because it is a stratagem to obtain usury or interest in the form of a sale that is not intended. As for when the buyer sells it to another person for less than what he paid for it, seeking the cash, this is the issue of the commodity sale. The scholars have differed on this; some have classified it with the issue of the buy-back sale, while others have said: there is nothing wrong with it. The precaution is not to deal in it.
The questioner : May Allah reward you with good. He says.