What is the ruling on purchasing a car by transferring its value to its original owner through an intermediary company, to which the buyer pays the price in installments with interest? Is the second party sinful? And what should he do, given that four years remain on the installments after one year, knowing that selling it would cause him a significant loss?

If a person buys a car through a financial company, the transaction takes two forms: The first is that the company buys the car first, then sells it to the second party at an increased price. This is a permissible murabaha sale. The second is that the company lends the buyer the price of the car for him to pay directly to the seller, and then the buyer repays the amount with an increase. This is usury (riba). Whoever has done this must repent to Allah and resolve not to return to it, and he is not required to sell the car.