A man wanted to buy a car, so the seller said to him, "I will buy it for you for cash at such a price, and on installments at a higher price."
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The questioner : O Shaykh, there is a man who sells cars. A person came to him wanting to buy a car from him, and he said to him: "I have two cars; the second car is better than the first, and I will buy it for you and sell it to you as you wish, either for cash or on installments. The cash price is around forty thousand, and the installment price is around sixty-two thousand. What is the ruling on this sale? Does it contain riba (usury or interest)?"
The Shaykh : Yes, if the one who wants to sell the car does not own the car, but rather wants to buy it for this person, then it is forbidden (haram) for him to take more than the value he paid. If he buys it for fifty, it is not permissible for him to sell it for fifty-one, because if he does that, he falls into riba (usury or interest). However, he may sell it for fifty, and in doing so, he has lent the buyer the price of the car, and this is better. As for if the car is in the possession of the man and people come to buy from him, and he says to them: "If you buy on installments, it is for such a price, and if you buy for cash, it is for such a price," meaning a lower price—for example, he says it is sixty thousand on installments and fifty thousand for cash—then there is nothing wrong with that, if the buyer takes it for one of the two prices. This is because there is no objection in it; it contains no riba (usury or interest), no ambiguity, and no gharar (excessive uncertainty in a contract). Rather, it is a clear sale. The buyer will not leave without knowing his situation: whether he bought it on deferred payment or for cash.
As for what some scholars held, saying that this is from the two sales in one sale,, this is not correct. Because if you say: "This is for twenty on credit, or for ten for cash," and he takes it for one of the two prices, there are not two sales. It is one sale, but the person is given the choice between two prices: one is higher but deferred, and the other is lower but for cash.
The two sales in one sale apply only to the issue of 'inah (a buy-back sale used to disguise a loan), which is: a person sells something for one hundred on a deferred basis, then buys it back for eighty for cash.
The Shaykh : Yes, if the one who wants to sell the car does not own the car, but rather wants to buy it for this person, then it is forbidden (haram) for him to take more than the value he paid. If he buys it for fifty, it is not permissible for him to sell it for fifty-one, because if he does that, he falls into riba (usury or interest). However, he may sell it for fifty, and in doing so, he has lent the buyer the price of the car, and this is better. As for if the car is in the possession of the man and people come to buy from him, and he says to them: "If you buy on installments, it is for such a price, and if you buy for cash, it is for such a price," meaning a lower price—for example, he says it is sixty thousand on installments and fifty thousand for cash—then there is nothing wrong with that, if the buyer takes it for one of the two prices. This is because there is no objection in it; it contains no riba (usury or interest), no ambiguity, and no gharar (excessive uncertainty in a contract). Rather, it is a clear sale. The buyer will not leave without knowing his situation: whether he bought it on deferred payment or for cash.
As for what some scholars held, saying that this is from the two sales in one sale,
And the Prophet (peace and blessings be upon him) prohibited the two sales in one sale.
والنّبيّ صلّى الله عليه وعلى آله وسلّم نهى عن بيعتين في بيعةThe two sales in one sale apply only to the issue of 'inah (a buy-back sale used to disguise a loan), which is: a person sells something for one hundred on a deferred basis, then buys it back for eighty for cash.