If a person asks another to lend him a sum of money, and he goes and buys a car for one hundred thousand riyals, then sells it to this debtor for one hundred and twenty thousand
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The questioner : If a person asks another to lend him a sum of money, and he goes and buys a car for one hundred thousand riyals, then sells it to this borrower for one hundred and twenty thousand riyals for a period of one year, for example, what is the ruling on that, given that...
The Shaykh : Repeat the question.
The questioner : He says: If a person asks another to lend him a sum of money, and he goes and buys a car for one hundred thousand riyals, then sells it to this debtor for one hundred and twenty thousand riyals for a period of one year, for example, what is the ruling on that, given that he did not buy the car until after the debtor informed him of his need for the aforementioned amount?
The Shaykh : The scholars (may Allah have mercy on them) have differed on this issue. It is called the issue of tawarruq, and people call it al-wa'dah in common usage. Some scholars have permitted it on the condition that the item is owned by the seller beforehand and that the buyer needs it, meaning he needs the money. Other scholars have prohibited it strictly. Among them is Shaykh al-Islam Ibn Taymiyyah (may Allah have mercy on him), who prohibited tawarruq and said: It is haram. His student Ibn al-Qayyim said: "He was often asked about it, but he refused to issue a ruling that it is permissible".
Shaykh al-Islam (may Allah have mercy on him) said: "This falls under the category of ruses to sell dirhams for dirhams with a delay and an increase". Ruses to do what is forbidden are prohibited by the Shari'ah. The Prophet (peace and blessings be upon him) said:Sahih al-Bukhari 4633 meaning they melted it Jami` at-Tirmidhi 1297Sahih (Darussalam). And he (peace and blessings be upon him) said: . It is true that ruses to do what is forbidden do not make it permissible; rather, they only increase its ugliness and prohibition. However, the thing in which there is no doubt about its prohibition is when a person comes to another and says, "I want you to buy this car for me from such-and-such a showroom and sell it to me for a profit." So he goes and buys it, then sells it to him for a profit, and we know that the seller would not have bought this car from the showroom if he had not bought it from him.
The questioner : Yes.
The Shaykh : So this seller, first, sold what he did not own.
And secondly: the meaning of this transaction, or the substance of this transaction, is that he lent him the value of the car with an increase. So it is a loan that yields benefit, and a loan that yields benefit is riba, as the scholars (may Allah have mercy on them) mentioned. Also, this seller who bought the car for the one in need sells it in the place where he bought it, and this is prohibited. For the Prophet (peace and blessings be upon him) prohibited selling goods in the place where they are bought until the merchants take them to their homes.
The truth is that this method will harm people, while its practitioner thinks it benefits them. Because people become bold with debts when they see this easy method; they buy many things they do not need, but just to compete with others in building houses, in luxurious cars, and in other matters they have no need for. So this method burdens people with debts, and perhaps the debtors will be unable to pay, which leads to the bankruptcy of the seller. So there are great harms to society from the economic aspect, and it facilitates debts for them in their liabilities until it burdens them. Yes.
The questioner : May Allah reward you. This is a female questioner from Riyadh who says.
The Shaykh : Repeat the question.
The questioner : He says: If a person asks another to lend him a sum of money, and he goes and buys a car for one hundred thousand riyals, then sells it to this debtor for one hundred and twenty thousand riyals for a period of one year, for example, what is the ruling on that, given that he did not buy the car until after the debtor informed him of his need for the aforementioned amount?
The Shaykh : The scholars (may Allah have mercy on them) have differed on this issue. It is called the issue of tawarruq, and people call it al-wa'dah in common usage. Some scholars have permitted it on the condition that the item is owned by the seller beforehand and that the buyer needs it, meaning he needs the money. Other scholars have prohibited it strictly. Among them is Shaykh al-Islam Ibn Taymiyyah (may Allah have mercy on him), who prohibited tawarruq and said: It is haram. His student Ibn al-Qayyim said: "He was often asked about it, but he refused to issue a ruling that it is permissible".
Shaykh al-Islam (may Allah have mercy on him) said: "This falls under the category of ruses to sell dirhams for dirhams with a delay and an increase". Ruses to do what is forbidden are prohibited by the Shari'ah. The Prophet (peace and blessings be upon him) said:
May Allah curse the Jews! When Allah forbade them to eat the fat of animals, they melted it
قاتل الله اليهود لما حرّم الله عليهم شحومها جملوهsold it, and consumed its price.
ثم باعوه فأكلوا ثمنهDo not do what the Jews did, so that you make lawful the prohibitions of Allah by the slightest of ruses
لا ترتكبوا ما ارتكبت اليهود فتستحلوا محارم الله بأدنى الحيلThe questioner : Yes.
The Shaykh : So this seller, first, sold what he did not own.
And secondly: the meaning of this transaction, or the substance of this transaction, is that he lent him the value of the car with an increase. So it is a loan that yields benefit, and a loan that yields benefit is riba, as the scholars (may Allah have mercy on them) mentioned. Also, this seller who bought the car for the one in need sells it in the place where he bought it, and this is prohibited. For the Prophet (peace and blessings be upon him) prohibited selling goods in the place where they are bought until the merchants take them to their homes.
The truth is that this method will harm people, while its practitioner thinks it benefits them. Because people become bold with debts when they see this easy method; they buy many things they do not need, but just to compete with others in building houses, in luxurious cars, and in other matters they have no need for. So this method burdens people with debts, and perhaps the debtors will be unable to pay, which leads to the bankruptcy of the seller. So there are great harms to society from the economic aspect, and it facilitates debts for them in their liabilities until it burdens them. Yes.
The questioner : May Allah reward you. This is a female questioner from Riyadh who says.