What is the ruling on someone who requested a loan of one million, and the lender stipulated its return as one million and two hundred, and then the lender bought cars for him for one million, which the borrower later sold for 695 thousand?

For the transaction to be a valid Tawarruq, the first party must genuinely purchase the car and assume its guarantee, then sell it to the second buyer to benefit from its price. Selling the car for more than its spot price, or the second buyer selling it for less than its market price, does not affect the validity. As for selling the car to the same showroom from which the first party purchased it, there is no harm in this if there was no prior collusion between them. However, if there was collusion, then it is impermissible.