Ruling on selling cars on installment with an increase in the price
Machine translationRead the Arabic original
Question: A car dealership has a specific installment system based on the customer paying a certain amount as a down payment, followed by an increase of 11–20% on the remaining (deferred) amount, with the total increasing according to the number of years agreed upon. What is the ruling?
Answer: In the name of Allah, all praise is due to Allah, and may peace and blessings be upon the Messenger of Allah.
If the company owns the car and it is in its possession, having taken possession of it through purchase, it may sell it to interested parties at the price they agree upon, including any increase it deems appropriate, whether the entire amount is deferred or part is deferred and part is cash. There is no harm in this; for Allah the Exalted said: [al-Baqarah: 275].
This is lawful sale, provided the company has owned the car, taken possession of it, and it is in its custody.
Answer: In the name of Allah, all praise is due to Allah, and may peace and blessings be upon the Messenger of Allah.
If the company owns the car and it is in its possession, having taken possession of it through purchase, it may sell it to interested parties at the price they agree upon, including any increase it deems appropriate, whether the entire amount is deferred or part is deferred and part is cash. There is no harm in this; for Allah the Exalted said:
But Allah has permitted trade and has forbidden interest
وَأَحَلَّ اللّهُ الْبَيْعَ وَحَرَّمَ الرِّبَاThis is lawful sale, provided the company has owned the car, taken possession of it, and it is in its custody.
Source
binbaz.org.sa
The Arabic text is copied verbatim from the original source, without any edits.