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Fatawaa

Subject : Ruling on Taking back the Full Payment of a Car after one Year of Ownership
Fatwa Number : 1421
Classified : Transactions & Marketing
Fatwa Type : Summarized Fatawaa

Question :

There is a car dealership, and their method of selling is as follows: The customer pays the full price of the car, the car is registered in their name, and another contract is written in which the company commits to refunding the full price of the car to the customer after one year from the purchase date. What is the Islamic ruling on this transaction?


The Answer :

As for purchasing the car, paying its price, and owning it, this is a valid sale with no issue. However, the condition of refunding the price — whether the car is returned to the seller or not — is an invalid condition that nullifies the entire contract. Therefore, this transaction is invalid and not permissible. And Allah Knows Best.






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