Purchasing car on deferred payments: Paying more than the actual amount… is this type of transa

Answer:

Wa alaykum assalam

This question has been answered before, in that if the price is agreed upon by both parties, whether to pay at spot or in installments, then this is permissible and cannot be considered Riba. [for details, see relevant sections in the Hanafi Fiqh Archives at www.sunnipath.com]

The seller has a right to fix any price for his commodity, and he also has a right to increase the price if the payment is done in installments. However, the important factor here is that the price of the item must be fixed.

And Allah knows best

Muhammad ibn Adam al-Kawthari
Darul Iftaa, Leicester, UK

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