What is the ruling on one who buys a car for a man and adds to the price for a term?
Machine translationRead the Arabic original
The questioner : In the name of Allah, all praise is due to Allah, and may peace and blessings be upon the Messenger of Allah. After that: There is a man who bought a car for another man and sold it to him in many installments, adding to the value for a known term. What is the ruling?
The Shaykh : For example: A person came to a merchant and said, "I want such-and-such a car." So the merchant went and bought it from the showroom for fifty thousand riyals, for instance, then sold it to this man for sixty thousand riyals. We say: This is a ruse to circumvent riba (usury or interest). This is a ruse to circumvent riba. Because instead of the merchant saying, "I will lend you its value of fifty thousand riyals on the condition that you return sixty thousand riyals to me by a certain term," the merchant went and bought this car in a purchase that was not intended, because he did not buy it except for this man. Is that clear?
So this is not permissible. However, if the car was with the merchant and he had bought it for fifty thousand, and this man came and said, "Sell it to me for sixty thousand for a term," then there is nothing wrong with that.
The Shaykh : For example: A person came to a merchant and said, "I want such-and-such a car." So the merchant went and bought it from the showroom for fifty thousand riyals, for instance, then sold it to this man for sixty thousand riyals. We say: This is a ruse to circumvent riba (usury or interest). This is a ruse to circumvent riba. Because instead of the merchant saying, "I will lend you its value of fifty thousand riyals on the condition that you return sixty thousand riyals to me by a certain term," the merchant went and bought this car in a purchase that was not intended, because he did not buy it except for this man. Is that clear?
So this is not permissible. However, if the car was with the merchant and he had bought it for fifty thousand, and this man came and said, "Sell it to me for sixty thousand for a term," then there is nothing wrong with that.