The Price and the Condition must be known

Question :

What is your opinion about selling a car for 10,000 in cash or 12,000 on installment payments, as is a well- known practice now in the auto dealerships?

Answer:

If a person sells another a car or anything else for 10,000 riyals in cash, for example, or 12,000 riyals to be paid later, and they part from the sitting of the contractual agreement without agreeing on one of the two options the up-front payment or delayed payment the sale is not permissible. This sale is not appropriate due to the unknown price and unknown condition as to what type of sale it is - payment up front or payment made later. Many of the scholars have used the Prophet's prohibition of two sales in one as a proof regarding this. This (the Prophet's prohibition), was recorded by Ahmad, An-Nasa'i, and At-Tirmithi who graded it authentic. So if the two dealers agree to one of the two prices before leaving the sitting of the contractual agreement by them specifying a price in cash payment or a price for a payment to be made later, then they part after specifying, the sell is permissible and correct due to the price and condition being known. May Allâh send blessings and peace upon Muhammad, his family and his Companions.

Read more:

Is this Riba?

Question : A man sold sacks of rice to another man to be paid later at a designa...

The ruling on selling Products on delayed (Credit) Payment for more than its current Price

Question : A man sells a product for an up-front price of 10 pounds for example,...

The ruling on the Profit of the Product being more than Half

Question : Is it permissible for me to earn on my sales product more than half i...

This is a tricky Scheme

Question : I wanted to buy a car, so I went to the car showrooms and picked out ...