Selling an item for a higher price on credit

Q: For money issues, I sold my car to my friend for 5 million and on the same day, I want to take back my car from him for easy installments. But he is selling it back to me for 6 million over 30 months installments. Is this allowed in Islam? The car is still on my name.

A: If both the sales are separate and are not subject to each other, (i.e. after you sell the car to him, he is not obligated to sell it to you, but rather he can sell it to anyone he wishes), and the intention of both of you is not to use the car as a strategy to make 1 million on the 5 million he is paying you (and the car is merely being used as a means to legalize a wrong end), then it will be permissible.

And Allah Ta'ala (الله تعالى) knows best.

 

Answered by:

Mufti Zakaria Makada

Checked & Approved:

Mufti Ebrahim Salejee (Isipingo Beach)