Is installment sale riba?

Question:
Cars sold via installment payments have their price increased if purchased on installments; for example, if the cash price of a car is 15,000 riyals, it is sold to a person for more than this amount via installments. Is this sale riba?

Answer:
There is no harm in installment sale, provided the terms are known and the installments are known, even if the installment price is higher than the cash price; because both the seller and the buyer benefit from the installment arrangement, as the seller benefits from the increase and the buyer benefits from the time allowed.
It is established in the two Sahihs from Aisha (may Allah be pleased with her): “That Barirah (may Allah be pleased with her) was sold by her people on installments over nine years, forty dirhams for each year”; this indicates the permissibility of installment sale; and because it is a sale with no gharar, no riba, and no ambiguity; thus it is permissible like other lawful sales, provided the item sold is in the possession and custody of the seller at the time of sale.