What is the ruling on buying a car on installment in order to sell it?
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The questioner : His EminenceThe Shaykh : What is the ruling on buying a car on installment when there is no need for it?
The Shaykh : I mean: a person wants to buy a car because it is better than the one he has?
The questioner : Yes, he has the amount, he has the amount, but he buys it on installment.
The Shaykh : For what purpose?
The questioner : I mean: he needs this amount.
The Shaykh : He wants to buy the car and sell it?
The questioner : Yes.
The Shaykh : This is called by the scholars the issue of tawarruq: that a person buys a commodity for a deferred price in order to sell it and benefit from its price. According to Shaykh al-Islam Ibn Taymiyyah, it is forbidden and not permissible under any circumstances. It is also, in my opinion, regarding your question, forbidden if he does not need it. Why would he borrow and burden his conscience with debt when he does not need it?
The Shaykh : I mean: a person wants to buy a car because it is better than the one he has?
The questioner : Yes, he has the amount, he has the amount, but he buys it on installment.
The Shaykh : For what purpose?
The questioner : I mean: he needs this amount.
The Shaykh : He wants to buy the car and sell it?
The questioner : Yes.
The Shaykh : This is called by the scholars the issue of tawarruq: that a person buys a commodity for a deferred price in order to sell it and benefit from its price. According to Shaykh al-Islam Ibn Taymiyyah, it is forbidden and not permissible under any circumstances. It is also, in my opinion, regarding your question, forbidden if he does not need it. Why would he borrow and burden his conscience with debt when he does not need it?