Buying a Car or Motorcycle on Installments – Sharʿī Ruling
Source: Fatāwā ʿIlmiyyah (Tawḍīḥ al-Aḥkām), Vol. 2, p. 220
Is it permissible in Sharīʿah to buy a car or motorcycle on installments?
For example, before purchasing, it is agreed that the buyer will pay the seller 25,000 rupees in cash, and the remaining amount will be paid in monthly installments of 2,000 rupees until completion. Under this arrangement, the total price becomes 80,000 rupees, whereas if the same motorcycle is bought in cash, the price is 75,000 rupees.
Does such a transaction fall under interest (ribā)? Since Fatāwā Islāmiyyah, Vol. 2, contains a fatwā declaring such transactions permissible, please clarify whether this is Sharʿī-permissible or considered ribā.
Al-ḥamdu lillāh, waṣ-ṣalātu was-salāmu ʿalā Rasūlillāh, ammā baʿd!
When there is a difference between the cash price and the deferred payment price, the scholars have a well-known difference of opinion regarding whether such a sale is permissible or not.
◈ Shaykh Muḥammad Nāṣir al-Dīn al-Albānī رحمه الله and some other scholars consider this type of sale impermissible.
◈ The author of this fatwā also supports this opinion.
◈ This position is supported by a ḥadīth narrated from Sayyidunā Abū Hurayrah رضي الله عنه.
(For detailed reference, see: Māhnāmah Shahādat, Vol. 6, Issue 5, p. 30, May 1999**)**
According to this research, when the price is fixed in two different ways — lower for cash and higher for installments — the matter becomes doubtful and may approach ribā. Therefore, it is necessary to exercise caution and avoid such transactions.
ھذا ما عندي والله أعلم بالصواب
Source: Fatāwā ʿIlmiyyah (Tawḍīḥ al-Aḥkām), Vol. 2, p. 220
Question:
Is it permissible in Sharīʿah to buy a car or motorcycle on installments?
For example, before purchasing, it is agreed that the buyer will pay the seller 25,000 rupees in cash, and the remaining amount will be paid in monthly installments of 2,000 rupees until completion. Under this arrangement, the total price becomes 80,000 rupees, whereas if the same motorcycle is bought in cash, the price is 75,000 rupees.
Does such a transaction fall under interest (ribā)? Since Fatāwā Islāmiyyah, Vol. 2, contains a fatwā declaring such transactions permissible, please clarify whether this is Sharʿī-permissible or considered ribā.
Answer:
Al-ḥamdu lillāh, waṣ-ṣalātu was-salāmu ʿalā Rasūlillāh, ammā baʿd!
When there is a difference between the cash price and the deferred payment price, the scholars have a well-known difference of opinion regarding whether such a sale is permissible or not.
Opinion ① – Impermissible:
◈ Shaykh Muḥammad Nāṣir al-Dīn al-Albānī رحمه الله and some other scholars consider this type of sale impermissible.
◈ The author of this fatwā also supports this opinion.
◈ This position is supported by a ḥadīth narrated from Sayyidunā Abū Hurayrah رضي الله عنه.
(For detailed reference, see: Māhnāmah Shahādat, Vol. 6, Issue 5, p. 30, May 1999**)**
Conclusion:
According to this research, when the price is fixed in two different ways — lower for cash and higher for installments — the matter becomes doubtful and may approach ribā. Therefore, it is necessary to exercise caution and avoid such transactions.
ھذا ما عندي والله أعلم بالصواب
