Car agency owner selling a car without plates or bill of sale and the buyer then sells it on credit before receiving it
Whoever purchases a car or any other commodity whether in cash or on credit, it is not permissible for him to sell it before he possesses it entirely. Taking possession of each commodity depends on its nature. The car, for example, is taken possession of by the purchaser taking it outside the dealer's showroom. If the car is purchased on credit, it is not permissible for the purchaser to sell it (Part No. 13; Page No. 254) to the same seller at a lower price than that at which he bought it. The reason for this is that it would be a usurious transaction. It is the same as `Inah sale (selling and delivering something to another person in installments but repurchasing it with less immediate cash) which is forbidden based on the Hadith
on the authority of
Ibn `Umar (may Allah be pleased with them both) who said: I heard Allah's Messenger (peace be upon him) saying:
When you enter into the 'Inah transaction, hold the tails of oxen, are pleased with agriculture, and give up performing jihad (struggle in the way of Allah), Allah (Exalted be He) will make disgrace prevail over you, and will not withdraw it until you return to your original religion.
Similarly, it is not permissible to sell a car before following the necessary procedures for selling it such as obtaining a license and registration because taking full legal possession of a car will not be achieved before then.
May Allah grant us success. May peace and blessings be upon our Prophet Muhammad, his family, and Companions.