What is the ruling on buying a car whose cash value is five thousand dollars and whose installment value is six thousand, meaning an increase of one thousand dollars, given that if there is a delay in paying the monthly installment, a fee is incurred?

The questioner : The time, my Shaykh, is nearly over. The last question here says:

The Shaykh: Yes.

The questioner : He asks: What is the ruling on buying a car whose cash value is, for example, five thousand dollars and whose installment value is six thousand, meaning an increase of one thousand dollars, given that if there is a delay in paying the monthly installment, a fee is incurred? What is the ruling on that?

The Shaykh : I say, and success is from Allah, that this sale is what is known in some countries as installment sale, and was known in the past as deferred sale. The scholars have differed, both in the past and in the present, on the permissibility of taking an increase in exchange for the deferral. Some said it is permissible, and some said it is prohibited. I am with those who prohibit it, in response to authentic hadiths that have come in this matter. Among them is the hadith of Abu Hurayrah (may Allah be pleased with him) in "Sunan Abu Dawud" and others, narrated from him with a strong chain from the Prophet (peace and blessings be upon him), in which he said: . And an explanation of "two sales in one sale" has come that leaves no room for denying that installment sale is what is intended by this hadith. The hadith that explains it is what Imam Ahmad narrated in his "Musnad" with a good chain through Sammak ibn Harb (may Allah have mercy on him) from Abdullah ibn Mas'ud, who said: "The Messenger of Allah (peace and blessings be upon him) prohibited two sales in one sale." So it was said to the narrator of the hadith, Sammak: What are two sales in one sale? He said: That you say: I sell you this for such-and-such in cash, and for such-and-such on credit. And this is installment sale. Therefore, this increase, if it is one thousand or less than that, is riba by the text of the first hadith, which is his saying (peace be upon him): , meaning: the one with the lower price, otherwise it is riba. Therefore, it is not permissible for all Muslim merchants to take an increase in exchange for installment sale or for waiting for payment to a limited term. This is the principle and this is the stronger position in this matter. If to that is added what was mentioned in the question, that if the buyer of that goods in an installment sale delays in fulfilling the term, taxes are imposed on him, meaning usurious money is imposed on him that he must pay, then this is a matter that makes the transaction forbidden by the consensus of the scholars, even those who may permit the increase in exchange for the deferral. I do not think anyone would permit this sale with the increase in the deferral if they knew that if the buyer delays in fulfilling the payment, usurious taxes would be incurred on him. So I say, warning against dealing in riba: The Prophet (peace and blessings be upon him) used to say: . And eating riba and dealing in riba are among the means that have made the Muslims today humiliated and ruled by their enemies. And the Prophet (peace and blessings be upon him) warned against such a thing by saying: , until you return to adhering to the rulings of your religion. This installment sale is forbidden, as you heard in the two hadiths mentioned just now. And this is sufficient. And I ask Allah for us and for all Muslims that He teach us what benefits us and grant us the ability to act upon what He has taught us. And may peace be upon you and the mercy of Allah and His blessings.

The questioner : And upon you be peace and the mercy of Allah and His blessings. In conclusion of this blessed meeting and beneficial dialogue, I offer to the venerable Shaykh Muhammad Nasir al-Din al-Albani the supplication that Allah reward us with the best reward for his acceptance of our invitation and his bearing the hardships of the heated dialogue, despite the health conditions he suffers from. And we ask Allah for him forgiveness and well-being in this noble month. Also, the center thanks all the brother listeners for their good listening, and the centers, associations, and participating organizations for their good cooperation with us in this meeting, which reached a number of more than eighty centers. And I would like to point out that the Dawah Center is also an independent center established on the donations of your Muslim brothers who seek reward. Therefore, we ask all the participating centers whose subscriptions have not yet arrived... The other thing we want to remind you of is that the well-known Shaykh Ahmed Deedat is also listening to this lecture from South Africa. And we remind you that he will be our guest, if Allah wills, next week. Please send all questions in English to the following fax number: 2173552012. And may Allah reward you with good, and may peace be upon you and the mercy of Allah and His blessings.

The Shaykh : And upon you be peace, and the mercy of Allah and His blessings and His forgiveness.