i am looking to open up a used car dealership business, i would like to approach it Islamicly as i recently came across an hadith which mentions something along the lines of "those who are honest in their business will be raised amongst the prophets in the day of judgement" so therefore i would like to have your thoughts/advise and opinions on what i can do in order to make it halal business.
I would also like to know is it islamic to buy the cars for less, then improve the cars and sell for more price, i know its a stupid question but has been running across my mind and am hopeful for an answer.
I also know that interest in Islam is haraam, so therefore on all cars on finance i will offer a 0% interest rate, which can also be used as a USP in order to attract more customers. is this the right thing to do in islam.
Also can i have some suggestions on names for the business.
all opinions/suggestions and recommendations will be greatly appreciated.
is it islamic to buy the cars for less, then improve the cars and sell for more price
Well, we have to make a profit. The question is, how much? Some people tend to be dishonest in order to make 'better' profits...
format_quote Originally Posted by 786arman
I also know that interest in Islam is haraam, so therefore on all cars on finance i will offer a 0% interest rate
This is an interesting concept, but I see a problem. Money is an ever depreciating asset. Meaning - what you can buy today with an amount will most likely be not enough in time to come. Hence, interest is a way to minimize this. If you are not considering interest, then you will have to figure out a way 'load' that cost (which you will have to bear) elsewhere, if not you will be losing.
Even Islamic bankers are having a headache with this and they circumnavigate this in a manner how they 'transact' through 'akad'. It all still seem devious to me but what can we do when we live in a world governed by these practices.
Well, we have to make a profit. The question is, how much? Some people tend to be dishonest in order to make 'better' profits...
This is an interesting concept, but I see a problem. Money is an ever depreciating asset. Meaning - what you can buy today with an amount will most likely be not enough in time to come. Hence, interest is a way to minimize this. If you are not considering interest, then you will have to figure out a way 'load' that cost (which you will have to bear) elsewhere, if not you will be losing.
Even Islamic bankers are having a headache with this and they circumnavigate this in a manner how they 'transact' through 'akad'. It all still seem devious to me but what can we do when we live in a world governed by these practices.
Peace
Alhamudulillah brother i appreciate your suggestion, thank you akhi, and yes i will try and find an alternative to the interests part of the business.
I don't know anything about car shop business, but I hope you will succeed Insha'Allah. I hope you're selling Nissan R30 series or Mazda RX7 :P
I suggest a name for your shop, "Wheel 2 Wheel"
Thank you for the name suggestion brother i think its a cool name , i will take that name into account. and inshallah i hope to0 be selling cars along those lines
I would also like to know is it islamic to buy the cars for less, then improve the cars and sell for more price, i know its a stupid question but has been running across my mind and am hopeful for an answer.
I suggest you to start from buy used car for less, improve it, and sell for more price. It's halal, as long as you are honest with the car condition when the consumer ask. In example, if you repaint this car, and the consumer ask, tell him that this car repainted.
I suggest you start from bottom like this to make you familiar with car business before you go up to higher level like dealership.
I suggest you to start from buy used car for less, improve it, and sell for more price. It's halal, as long as you are honest with the car condition when the consumer ask. In example, if you repaint this car, and the consumer ask, tell him that this car repainted.
I suggest you start from bottom like this to make you familiar with car business before you go up to higher level like dealership.
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Opening Car Shop Business
I don't know anything about car shop business, but I hope you will succeed Insha'Allah. I hope you're selling Nissan R30 series or Mazda RX7 :P
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