What is the ruling on purchasing a car by installments from a company that does not own the car at the time of the contract, and takes an advance payment from the buyer, then contacts a foreign company to provide the car, and the installment payments begin after the buyer receives the car?

A condition for a sale to be valid is that the item sold must be owned by the seller at the time of the contract, except in the case of a salam (forward) sale, based on the Prophet’s (peace be upon him) saying: “Do not sell what you do not possess.” Accordingly, the described transaction is prohibited because the selling company does not own the car. To correct it, either the entire price must be paid in advance and the car described with its characteristics to become a salam sale, or the company must wait to purchase the car and have it enter its possession before concluding the contract.