What is the ruling on purchasing a car or phone in installments from a bank or company, if the bank buys the car from a third party then sells it to me at a higher price with the transfer of ownership occurring only on paper, or if the company sells the phone at a higher price with a cancellation penalty if I fail to make payments?

If the bank purchases the car for itself and then sells it in installments to the one who ordered the purchase, there is no harm, even if it is at a higher price; this is because time has a share in the price. The bank may take a guarantee for the earnestness of the one who ordered the purchase. It is permissible for the bank to deduct any actual damage incurred if the buyer withdraws. It is also permissible to combine sale and lease in one transaction. There is no harm in a penalty clause as long as it does not result in an increase in the principal debt. It is permissible for the two transacting parties to agree on the acceleration of all installments if the debtor refrains from fulfilling any installment.