Profit has no fixed Limit
Question :
Is it permissible to buy a car whose value on the market is 30,000 riyals and the price is paid over monthly installments, but the total cost is 50,000 riyals? This means that there is a difference of 20,000 riyals between the original cost and the cost after dividing the payments into install- ments. Is there anything wrong with this?
Answer:
There is no harm in the mentioned transaction if the car was owned by the seller and it actually was in his possession due to the generality of the evidences. There is no fixed limit for the profit. Rather, that differs according to the conditions of the buyer and according to the length or shortness of the time of payments.
It has been confirmed in the Two Sahihs from 'A'ishah that Barirah bought her freedom from her master for 9 Awaaq of silver to be paid over a period of 9 years. A payment of 1 Uqiyah was to be made each year. Yet, the Prophet did not disapprove of that and he did not ask about her price if the sale was in cash paid up front. And Allâh is the Giver of success.
Source:
Ash-Shaykh Ibn Baz
Fatawa Islamiyah, Vol. 4 Pages 385-386
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