What is the ruling on installment sales of cars?
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The Shaykh : After that
The questioner : May the peace, mercy, and blessings of Allah be upon you, esteemed Shaykh.
I and another person paid a sum of three hundred thousand riyals and we buy new cars and put them in a showroom. Then, when a buyer comes to us, we sell them to him on installment. We heard from the people of the town where we live that they did the same work and that they sought your fatwa, and that you did not permit this matter.
The Shaykh : Yes, yes. First, may Allah reward you. Installment sales: sometimes a person comes to you and says, "I want a car." You say, "I do not have cars. Go to the showroom and choose any car. I will buy it in my name and pay the money to the showroom, then I will sell it to you on installment at a higher price." Do you understand this?
The questioner : Yes
The Shaykh : This is forbidden, there is no doubt in it. First, because the lender sold what he does not own. Second, he did not buy this car except for the sake of riba, which is that he sells it to him at a higher price. If not for the riba, he would not have bought it. If he came and said, "May Allah reward you with good, lend me the money and buy the car for me, and I will give it to you later," he would not have accepted. And the Prophet (peace and blessings be upon him) said:Sahih al-Bukhari 1 This is one point. Second, a person may have cars that are in his possession, bought with a valid purchase. People come to him and say, "We want you to sell them to us on installment." Do you understand this?
The questioner : Yes
The Shaykh : This has three aspects.
The first aspect: he wants to buy a car on installment to use it, either for himself or for hire. This is permissible, there is no doubt in it.
Second: he buys the car on installment to go to another country to sell it for more. The debtor who needs the car says, "I want to buy this car from you on installment for fifty thousand, and it is worth forty thousand." He takes it from him, then goes and sells it in another country where the price is higher, selling it for fifty thousand cash. This is also permissible, because this is a type of trade.
The third, or the third scenario, is that he buys it from him for the sake of the money, only for the money. He buys it from you and immediately sells it, whether he profits or loses, because he wants only the money. This issue is called by the scholars the issue of tawarruq. Some scholars said it is permissible out of need; if a person needs it, for example, for marriage or to build a house or the like, there is no harm. And some scholars said it is not permissible absolutely. Among those who said it is not permissible absolutely is Shaykh al-Islam Ibn Taymiyyah (may Allah have mercy on him). He said: "The issue of tawarruq is a ruse, because the buyer, instead of saying, 'Give me forty thousand riyals for fifty thousand in one year,' says, 'Sell me this car,' and he knows, and the seller also knows, that he wants only the money." So Shaykh al-Islam said: But I have a detail in this third scenario: if a person is compelled to do so and does not find anyone to lend him, meaning to give him a loan, and does not find anyone to sell to him via salam, then there is no harm. Do you understand now?
The questioner : Yes, Shaykh. As for us, we buy and pay the money, whether cash or by check, and we put the car in the showroom. Do we continue, or for example?
The Shaykh : Fine, you put it in the showroom. I come and buy it from you.
The questioner : Any person, for example, who has a desire to buy, I sell to him. I do not know if he wants to sell, I do not know if he wants to ride in it, I do not know about him. Do we continue or not?
The Shaykh : But look, if you know that he only wants to buy it from you in order to sell it immediately for the money, do not sell to him. Continue. But if a person comes to you and you do not know if he wants to use it, or wants to trade with it in another place, or wants to sell it now and take the money, there is no harm in selling to him. But if you know that this man is poor and has no means of earning, but he wants to take it from you and sell it immediately, then without doubt, scrupulousness is to leave this transaction.
The questioner : Fine, we leave it, Shaykh. We leave this whole detailed process.
The Shaykh : No, no. If a person comes who needs a car and wants to buy a car to use it, to work with it, to go to his work, his school, his travel, or a person who wants to earn his livelihood with it, sell to him. There is no obstacle.
The questioner : Most buyers buy for the sake of scrupulousness.
The Shaykh : Yes, this is it. If most buyers are like this, I advise you to leave it. Leave it.
The questioner : I have a question. I have a partner, and I would like you to write on the question so that he does not take it to heart. I am afraid that later he will say, "The devil whispered to him and played with him; he wants to take the profit." Yes, it is necessary.
The Shaykh : There is no harm, there is no harm. We will transfer it from the tape and sign it, if Allah wills.
The questioner : May Allah reward you with good
The Shaykh : Yes
The questioner : Noble Shaykh, is the night prayer and witr made up together during the day, or only the night prayer without witr?
The questioner : May the peace, mercy, and blessings of Allah be upon you, esteemed Shaykh.
I and another person paid a sum of three hundred thousand riyals and we buy new cars and put them in a showroom. Then, when a buyer comes to us, we sell them to him on installment. We heard from the people of the town where we live that they did the same work and that they sought your fatwa, and that you did not permit this matter.
The Shaykh : Yes, yes. First, may Allah reward you. Installment sales: sometimes a person comes to you and says, "I want a car." You say, "I do not have cars. Go to the showroom and choose any car. I will buy it in my name and pay the money to the showroom, then I will sell it to you on installment at a higher price." Do you understand this?
The questioner : Yes
The Shaykh : This is forbidden, there is no doubt in it. First, because the lender sold what he does not own. Second, he did not buy this car except for the sake of riba, which is that he sells it to him at a higher price. If not for the riba, he would not have bought it. If he came and said, "May Allah reward you with good, lend me the money and buy the car for me, and I will give it to you later," he would not have accepted. And the Prophet (peace and blessings be upon him) said:
The reward of deeds depends upon the intentions and every person will get the reward according to what he has intended.
إنما الأعمال بالنيات وإنما لكل امرئ ما نوىThe questioner : Yes
The Shaykh : This has three aspects.
The first aspect: he wants to buy a car on installment to use it, either for himself or for hire. This is permissible, there is no doubt in it.
Second: he buys the car on installment to go to another country to sell it for more. The debtor who needs the car says, "I want to buy this car from you on installment for fifty thousand, and it is worth forty thousand." He takes it from him, then goes and sells it in another country where the price is higher, selling it for fifty thousand cash. This is also permissible, because this is a type of trade.
The third, or the third scenario, is that he buys it from him for the sake of the money, only for the money. He buys it from you and immediately sells it, whether he profits or loses, because he wants only the money. This issue is called by the scholars the issue of tawarruq. Some scholars said it is permissible out of need; if a person needs it, for example, for marriage or to build a house or the like, there is no harm. And some scholars said it is not permissible absolutely. Among those who said it is not permissible absolutely is Shaykh al-Islam Ibn Taymiyyah (may Allah have mercy on him). He said: "The issue of tawarruq is a ruse, because the buyer, instead of saying, 'Give me forty thousand riyals for fifty thousand in one year,' says, 'Sell me this car,' and he knows, and the seller also knows, that he wants only the money." So Shaykh al-Islam said:
Actions are only by intentions
إنما الأعمال بالنياتThe questioner : Yes, Shaykh. As for us, we buy and pay the money, whether cash or by check, and we put the car in the showroom. Do we continue, or for example?
The Shaykh : Fine, you put it in the showroom. I come and buy it from you.
The questioner : Any person, for example, who has a desire to buy, I sell to him. I do not know if he wants to sell, I do not know if he wants to ride in it, I do not know about him. Do we continue or not?
The Shaykh : But look, if you know that he only wants to buy it from you in order to sell it immediately for the money, do not sell to him. Continue. But if a person comes to you and you do not know if he wants to use it, or wants to trade with it in another place, or wants to sell it now and take the money, there is no harm in selling to him. But if you know that this man is poor and has no means of earning, but he wants to take it from you and sell it immediately, then without doubt, scrupulousness is to leave this transaction.
The questioner : Fine, we leave it, Shaykh. We leave this whole detailed process.
The Shaykh : No, no. If a person comes who needs a car and wants to buy a car to use it, to work with it, to go to his work, his school, his travel, or a person who wants to earn his livelihood with it, sell to him. There is no obstacle.
The questioner : Most buyers buy for the sake of scrupulousness.
The Shaykh : Yes, this is it. If most buyers are like this, I advise you to leave it. Leave it.
The questioner : I have a question. I have a partner, and I would like you to write on the question so that he does not take it to heart. I am afraid that later he will say, "The devil whispered to him and played with him; he wants to take the profit." Yes, it is necessary.
The Shaykh : There is no harm, there is no harm. We will transfer it from the tape and sign it, if Allah wills.
The questioner : May Allah reward you with good
The Shaykh : Yes
The questioner : Noble Shaykh, is the night prayer and witr made up together during the day, or only the night prayer without witr?