Buying and selling cars on installment
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Question: Some of the brothers who trade in buying and selling cars on installment ask: He sells the car based on monthly installments, where he agrees with the person who wants to buy a car on installment—due to his need for it—and agrees with him on the sale before he buys the car for him—guaranteeing his profit first—so what is the ruling on that?
Answer: If the sale of the car or the like to the buyer is after the seller has taken ownership of it, registered it in his name, and taken possession of it, then there is no harm. However, before that, it is not permissible; due to the saying of the Prophet (peace and blessings be upon him) to Hakim ibn Hizam:Sunan Ibn Majah 2187Hasan (Darussalam), and his saying (peace and blessings be upon him): .
And these are two authentic hadiths; so it is obligatory to act upon them and to be cautious of what contradicts that. And success is from Allah.
Answer: If the sale of the car or the like to the buyer is after the seller has taken ownership of it, registered it in his name, and taken possession of it, then there is no harm. However, before that, it is not permissible; due to the saying of the Prophet (peace and blessings be upon him) to Hakim ibn Hizam:
Do not sell what is not with you.
لا تبع ما ليس عندكIt is not lawful to combine a loan with a sale, nor to sell what you do not have
لا يحل سلف وبيع، ولا بيع ما ليس عندكAnd these are two authentic hadiths; so it is obligatory to act upon them and to be cautious of what contradicts that. And success is from Allah.
Source
binbaz.org.sa
The Arabic text is copied verbatim from the original source, without any edits.