What is the ruling on leasing that ends in ownership?
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The questioner : What is the ruling on leasing that ends in ownership?
The Shaykh : What is leasing that ends in ownership? I mean, tell me, you, the questioner.
The questioner : The one who leases a car to you, and every month it is eight hundred riyals.
The Shaykh : For how long? How much?
The questioner : For three years.
The Shaykh : Fine.
The questioner : Every month eight hundred riyals, and after three years you own it.
The Shaykh : You own it for nothing? This does not happen; this is not reasonable. He says: I lease you a car for one hundred riyals every month, and after three years you own it. The lessee owns it. This is not reasonable, because that means the company gives you the car for free at the end, and they cannot do that. Do you understand what I am saying? Now, wait, do you understand what I am saying or not? I leased you the car for one hundred riyals every month for three years. After three years, I gave it to you. Is this clear or not clear?
The questioner : It is clear.
The Shaykh : So in the end, the car came to you for free, or not? Because the one hundred riyals is for your use of it, so it would be for free. This cannot be reasonable. But it is not possible to say: We lease it to you for one hundred riyals, and after three years it is yours, unless the rent is doubled. Meaning: if he had leased it without this, it would have been fifty riyals a month. Do you understand or not? This is certain. If that is the case, then now you are paying more rent than usual. Certainly, it does not guarantee that the car will remain for three years; it may be damaged by fire or a collision or something else. If that happens, you, the lessee, are a loser or a winner? A loser. You have lost now. You lost the extra half every month, or did you benefit? And if it remains, you are a winner, because the car came to you for free. However, I have heard that they say: if he is unable to pay the last installment, they take the car and do not give him anything. And this is injustice. Therefore, this is a trick by the owners of companies and money to catch people's money in murky water. And the origin of tricks in buying and selling came from the Jews, for they are the ones who resorted to tricks when fats were forbidden to them. What did they do? They melted them and then sold them and ate their price. As for the practical side, this issue is now under the consideration of the Committee of Senior Scholars. They are researching it and will issue a fatwa on it, if Allah wills, in the next session, because until now they have not visualized how this transaction works. So do not enter into this transaction until the fatwa comes from the Committee of Senior Scholars.
The Shaykh : What is leasing that ends in ownership? I mean, tell me, you, the questioner.
The questioner : The one who leases a car to you, and every month it is eight hundred riyals.
The Shaykh : For how long? How much?
The questioner : For three years.
The Shaykh : Fine.
The questioner : Every month eight hundred riyals, and after three years you own it.
The Shaykh : You own it for nothing? This does not happen; this is not reasonable. He says: I lease you a car for one hundred riyals every month, and after three years you own it. The lessee owns it. This is not reasonable, because that means the company gives you the car for free at the end, and they cannot do that. Do you understand what I am saying? Now, wait, do you understand what I am saying or not? I leased you the car for one hundred riyals every month for three years. After three years, I gave it to you. Is this clear or not clear?
The questioner : It is clear.
The Shaykh : So in the end, the car came to you for free, or not? Because the one hundred riyals is for your use of it, so it would be for free. This cannot be reasonable. But it is not possible to say: We lease it to you for one hundred riyals, and after three years it is yours, unless the rent is doubled. Meaning: if he had leased it without this, it would have been fifty riyals a month. Do you understand or not? This is certain. If that is the case, then now you are paying more rent than usual. Certainly, it does not guarantee that the car will remain for three years; it may be damaged by fire or a collision or something else. If that happens, you, the lessee, are a loser or a winner? A loser. You have lost now. You lost the extra half every month, or did you benefit? And if it remains, you are a winner, because the car came to you for free. However, I have heard that they say: if he is unable to pay the last installment, they take the car and do not give him anything. And this is injustice. Therefore, this is a trick by the owners of companies and money to catch people's money in murky water. And the origin of tricks in buying and selling came from the Jews, for they are the ones who resorted to tricks when fats were forbidden to them. What did they do? They melted them and then sold them and ate their price. As for the practical side, this issue is now under the consideration of the Committee of Senior Scholars. They are researching it and will issue a fatwa on it, if Allah wills, in the next session, because until now they have not visualized how this transaction works. So do not enter into this transaction until the fatwa comes from the Committee of Senior Scholars.