Q. I wish to purchase a vehicle but i don’t have the money to pay for it immediately. My brother has offered to purchase the vehicle and then resell it to me at a profit over a set period of time. Is this transaction valid?
A.It will be permissible for your brother to purchase a vehicle and resell it to you with an added mark-up in line with the following basic principles:
a) Your brother purchases the vehicle and takes full possession of it as his own vehicle.
b) Your brother bears all the risks associated with the vehicle whilst it is in his possession.
c) Your brother does not make it a precondition for you to purchase the vehicle from him at the time of purchasing the vehicle.
d) The selling terms of the vehicle are mutually agreed upon when concluding the sale.
Allah Ta’ala Knows Best
Mufti Ismaeel Bassa