Author: Dr. Muhammad Ziya-ur-Rahman Azmi رحمه الله
◈ Prohibited Form of Car Sale Through Installments Using Legal Tricks (Ḥīlah) ◈
A car arrives at a showroom. The showroom owner sells it to a person, who then sells it on installments to a third party. Eventually, the same car returns to the showroom, sometimes repeatedly.
This form of transaction is ḥarām and invalid, as it is a clear example of ḥīlah (deceptive legal maneuver) to legitimize usury (ribā).
The case typically unfolds as follows:
“I want to buy a car on installments.”
“Go to the showroom and choose any car you like.”
✔ This arrangement is not a genuine sale, but a disguised loan:
This is identical in essence to ribā, as it involves:
Shaykh Ibn ʿUthaymīn رحمه الله explains:
Deceptive transactions using ḥīlah to justify ribā are worse than openly consuming interest, because:
Such actions are akin to imitating the Jews, whom the Prophet ﷺ warned against:
"Do not do what the Jews did: they used tricks to make what Allah made ḥarām appear ḥalāl."
(Ḍaʿīf: Ghāyat al-Marām, Ḥadīth 11)
When animal fat (churbī) was prohibited, they melted it, sold it, and consumed the proceeds, not the fat itself.
Yet, even that trick was less severe than the modern-day ḥīlah used in these sales.
✔ This form of transaction is ḥarām and invalid.
✔ If one were forced to eat camel’s feet out of hunger, it would still be better than indulging in this deceptive sale.
✖ Widespread practice among people is not a valid Sharʿi justification.
“Most people doing something does not make it right in the eyes of Allah.”
Ibn ʿUthaymīn – Nūr ʿala al-Darb 18/205
◈ Prohibited Form of Car Sale Through Installments Using Legal Tricks (Ḥīlah) ◈
❖ The Scenario:
A car arrives at a showroom. The showroom owner sells it to a person, who then sells it on installments to a third party. Eventually, the same car returns to the showroom, sometimes repeatedly.
❖ The Sharʿi Ruling:
This form of transaction is ḥarām and invalid, as it is a clear example of ḥīlah (deceptive legal maneuver) to legitimize usury (ribā).
The case typically unfolds as follows:
- A needy person approaches a trader and says:
“I want to buy a car on installments.”
- The trader says:
“Go to the showroom and choose any car you like.”
- The buyer chooses the car and informs the trader.
- The trader purchases the car from the showroom and sells it on installments to the buyer — despite knowing the buyer doesn’t actually want the car itself, but only needs money or financial gain.
❖ Why This Is Ḥarām:
✔ This arrangement is not a genuine sale, but a disguised loan:
- The trader buys the car for 50,000,
- Sells it to the customer for 70,000 in installments,
- The buyer immediately sells it back to the showroom or someone else,
- The actual goal is to receive cash, not the car.
This is identical in essence to ribā, as it involves:
- Exchange of money for more money,
- With deferment and interest,
- Under the false guise of a sale.
❖ Stronger Than Clear Ribā:
Shaykh Ibn ʿUthaymīn رحمه الله explains:
Deceptive transactions using ḥīlah to justify ribā are worse than openly consuming interest, because:
- The open sinner feels guilt and may repent,
- While the one using ḥīlah believes it is permissible, continues the act, and is not remorseful.
Such actions are akin to imitating the Jews, whom the Prophet ﷺ warned against:
"Do not do what the Jews did: they used tricks to make what Allah made ḥarām appear ḥalāl."
(Ḍaʿīf: Ghāyat al-Marām, Ḥadīth 11)❖ Example of Jewish Trickery:
When animal fat (churbī) was prohibited, they melted it, sold it, and consumed the proceeds, not the fat itself.
Yet, even that trick was less severe than the modern-day ḥīlah used in these sales.
❖ Final Verdict:
✔ This form of transaction is ḥarām and invalid.
✔ If one were forced to eat camel’s feet out of hunger, it would still be better than indulging in this deceptive sale.
✖ Widespread practice among people is not a valid Sharʿi justification.
“Most people doing something does not make it right in the eyes of Allah.”
Ibn ʿUthaymīn – Nūr ʿala al-Darb 18/205