Should a Muslim merchant include the price of a car he sold, in order to buy another, with the value of his trade goods to zakat them together, or should he zakat the trade goods only and disregard the car's price? And is zakat due on a car that is used with the intention of selling it for profit?

Zakat becomes obligatory on money designated for purchasing a car if a full lunar year (hawl) passes while it is in possession. However, a car that has been acquired is not subject to Zakat. But upon its sale, its price becomes Zakatable wealth, and its ruling is the same as that of acquired wealth during the hawl. Zakat is not obligatory on it until a hawl passes over it. It can be added to trade capital, and Zakat can be paid on the total amount when the hawl of the initial capital is due. If the car was purchased with the intention of trading in it, then it is subject to Zakat on trade goods, provided its conditions are met, even if it is used for personal purposes. Zakat is not waived unless there is an intention to acquire it for personal use.