What is the ruling on buying a car for cash with the intention of selling it on installment with an increase in the price?
Machine translationRead the Arabic original
The questioner : O Shaykh, what is the ruling on buying a car for cash with the intention of selling it on installment with an increase in the price?
The Shaykh : What do you mean, buying it for cash?
The questioner : And selling it on installment with an increase in the price?
The Shaykh : If the person who bought it for cash did not buy it except for the specific person who came to ask for it on installment, then it is forbidden. For example, I came to you and said: I want such-and-such a car in such-and-such a showroom, and I do not have the money. So you said: I will buy it for cash and pay the showroom, and I will sell it to you on installment with an increase. This is forbidden, because it is a clear stratagem instead of saying: Take its value in cash as a loan and buy it with it, but pay me more. Instead of saying that, you went and bought it in a way that was not intended; if you had not come to me, I would not have bought it or even thought of it. So this is not permissible.
But if the car was with a person in his showroom, or he was selling it, for example, and you said: O so-and-so! I want to buy the car from you, and it is worth in cash, and you said: I want to buy it from you for deferred for one year, then this is permissible and there is nothing wrong with it, by the saying of Allah the Exalted: [Al-Baqarah 2:282] Do you understand now?
The questioner : Yes.
The Shaykh : Okay, are we finished?
And my brother Musa is indicating that the time is up, and I hope you will excuse us next week, because I will be traveling to the Hijaz and I am afraid I will not return before Thursday. So please allow us, may Allah reward you with good, and inform whoever told you that there would be a session here that there will be no session next week. May Allah bless you.
And all praise is due to Allah, Lord of the worlds, and may Allah send prayers and blessings upon our Prophet Muhammad, his family, and all his Companions.
The Shaykh : What do you mean, buying it for cash?
The questioner : And selling it on installment with an increase in the price?
The Shaykh : If the person who bought it for cash did not buy it except for the specific person who came to ask for it on installment, then it is forbidden. For example, I came to you and said: I want such-and-such a car in such-and-such a showroom, and I do not have the money. So you said: I will buy it for cash and pay the showroom, and I will sell it to you on installment with an increase. This is forbidden, because it is a clear stratagem instead of saying: Take its value in cash as a loan and buy it with it, but pay me more. Instead of saying that, you went and bought it in a way that was not intended; if you had not come to me, I would not have bought it or even thought of it. So this is not permissible.
But if the car was with a person in his showroom, or he was selling it, for example, and you said: O so-and-so! I want to buy the car from you, and it is worth
50
5060
60O you who have believed, when you contract a debt for a specified term, write it down.
يَا أَيُّهَا الَّذِينَ آمَنُوا إِذَا تَدَايَنْتُمْ بِدَيْنٍ إِلَى أَجَلٍ مُسَمّىً فَاكْتُبُوهُThe questioner : Yes.
The Shaykh : Okay, are we finished?
And my brother Musa is indicating that the time is up, and I hope you will excuse us next week, because I will be traveling to the Hijaz and I am afraid I will not return before Thursday. So please allow us, may Allah reward you with good, and inform whoever told you that there would be a session here that there will be no session next week. May Allah bless you.
And all praise is due to Allah, Lord of the worlds, and may Allah send prayers and blessings upon our Prophet Muhammad, his family, and all his Companions.