Selling A Vehicle Registered In the Following Year

Question

It is common practice that a vehicle is purchased in November or December, and registered in the next year. This is done so that the car is sold for a higher price.

Will it affect the mas’ala if a person says that when he sells the car he will inform the buyer that it was purchased in the year  before it was registered.

Is this permissible?

Answer

When a customer intends purchasing a vehicle, his decision is greatly dependent on the model and mileage of the vehicle. The value of a vehicle is predominantly dependent on the model of the vehicle as well, the later the model of the vehicle, the higher the value. The moment a person purchases a vehicle then it is no longer regarded as brand new and  immediately liable for registration. If registered immediately as required, the true model of the vehicle will be reflected on the log book. 

On the other hand, if a person purchases a vehicle (in Nov 2013) and takes immediate delivery but only registers it in Jan 2014 and when selling it, tells the buyer that it is a 2014 model (when in fact, it is in reality a 2013 model), then this will be regarded as deception. This vehicle is now holding a 2014 model book value, whereas it is a 2013 model. When selling the vehicle, the customer also pays a higher price as he is under the impression that it is a later model (2014 in our example) instead of a 2013 model. Regarding such deception, Rasulullah Sallallahu Alayhi Wa Sallam is reported to have said, 

Whoever deceived is not from amongst us

Therefore, as a Muslim one should ensure that the vehicle is registered immediately after purchase, and one should not intentionally delay the registration process so that the vehicle is registered as a later model with a higher book value. If for some reason, one had delayed registration and the log book indicates that the vehicle is a later model then this act can be rectified by informing the customer (when selling the vehicle) that the particular vehicle that is for sale is not a 2014 model as reflected on the log book but it is a 2013 model. If the customer still intends purchasing the vehicle (and both parties are happy to conclude the deal) then the transaction will be valid and free of deception.

Checked and Approved By:

Mufti Muhammed Saeed Motara Saheb D.B.

References

عن حذيفة قال قال رسول الله : من غشنا فليس منا 

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