This is a tricky Scheme

Question :

I wanted to buy a car, so I went to the car showrooms and picked out the car that I wanted. Then I went to a man that I am acquainted with and who does business in buying and selling cars by installment payments, and I presented to him the matter. Thus, he said to me, "I will buy the car for you that you want and I will take an amount of 10,000 riyals more than its price for the installment payments. So, I went to the car dealership and I paid a down payment that was 500 riyals and he (my acquaintance) went with me after that to the dealership and he bought the car and closed out the deal. He paid its price in cash without even seeing the car. Then, when we left the dealership he asked me, "Where is the car?" So, I showed it to him. He then said, "Congratulations on your car." Then he left and I took the car while it was in his name. After that I began paying him monthly installments according to what we had previously agreed to. Is this sale permissible? If it is not permissible, what should be done, as the car has been in my possession for approximately a year? I do not think that he will be ready to cancel the increase that he stipulated. Please guide me as to what I should do, and may Allâh reward you with good.

Answer:

This sales transaction is forbidden and it is a tricky method of practicing Riba. This is because the reality of the matter is that the man loaned you the value of the car for Riba, but he bought it in a superficial purchase that was not the intent of the transaction. Deceitful methods of doing things that are forbidden by Allâh do not change them to being lawful. Rather, it adds wickedness to their wickedness and ugliness to their ugliness. It also causes the man to be similar to the Jews who seek to make lawful those things that Allâh has forbidden by the lowest schemes. Indeed the Prophet said in what has been authenticated from him:
"May Allâh curse the Jews. When the fat of the animals was made unlawful for them they melted it, sold it and devoured (i.e., used) its price."

Also, every believer reads the story of the people of the Sabbath day in the Book of Allâh.

Allâh had made fishing on the Sabbath day (Saturday) forbidden for the people of the village that was at the edge of the sea and he tested them with this. So, the fish would come on Saturday swimming on top of the water due to their abundant numbers. Then, on days other than Saturday, they would not come to the people. Then, after time went on and they thought that they must catch the fish, they plotted a deceitful way to do that. They placed fishing nets out on Friday in the water. Then, when it was Saturday, the fish came and were caught in these nets. Then, when Sunday came, they took the fish from the nets. So, what was their punishment? Allâh, the Mighty and Majestic, said:
"And indeed you knew those amongst you who transgressed in the matter of the Sabbath (i.e., Saturday). We said to them: 'Be you monkeys, despised and rejected.' So, We made this punishment an example to their own and to succeeding generations and a lesson to those who are Muttaqun (the pious)."

At this opportune time I would like to advise my Muslim brothers about scheming to do those things that are forbidden by Allâh and so that they may know that the consideration in the contracts is according to their intentions (goals). This is due to the Prophet's statement:

"Actions are only with intentions and each person will only get what he intended."

If this man was a true friend to his companion, nothing would be better for him than to loan him the car's price as a goodly loan with no Riba, and in doing so he would be one of the good doers. Allâh says in His Book:
"Verily Allâh loves those who do good."

And verily, I advise this brother, the friend who deals in this type of transaction to cancel the Riba that he added to the value of the car and to cut the payments down to the actual price of the car for which he bought it.