Loan to friend: issues with car as collateral

[Mohitsethi]

I'm minded to loan £1000 to a friend, not my closest but more than an acquaintance, to buy a car. Previously I've loaned smaller amounts, c£200, and have always been repaid but never on time and never without some small hassle. Having said that, in the scheme of things, I've never fallen out with said friend as he's always come good and has never been seriously late in repaying. He's just been a bit tardy and I trust him to repay.
But £1000 is a much bigger sum of money, and although I could afford to lose it, not getting repaid or having to spend a lot of time chasing payment would seriously mess up the friendship.
My question is, could or should I demand that the car purchased with the loan be put up as collateral for the money lent?
For example, could or should I buy the car in my name and only transfer ownership once the loan has been repaid?
I'm not a driver or car owner so I'm not familiar with the legal situation regarding owning a car that someone else drives... Eg if they're involved in an accident or do something illegal in the car whilst I still own it how would it affect me?
Grateful for any advice.

[pflyers85]

Personally I don't loan my friends money unless its a very small amount of money that I can afford to lose. (Ie: Friend accidentally left wallet at home, didn't bring cash to somewhere that is cash only, etc) If they need a serious loan that is what the bank is for. If the bank determines they are unworthy borrowers then why should I take the chance of loaning them money?

[disneysteve]

The absolute life best advice is DON'T DO IT.

I agree with the previous poster. If your friend needs a loan, let him go get a loan. If he can't qualify for a loan, then he needs to buy a cheaper car that he can afford for cash.

[Mohitsethi]

Thanks both - sound advice

Thanks to both posters,
This is sound advice and reflects my own instinctive feelings...
Regardless of whether I can afford to lose a grand, it's just too much money to recklessly throw away; and you're, right: the fact that regular avenues of finance are closed to this guy is a 'red flag'.
Plus it seems that getting involved with the car ownership only would serve to complicate matters and potentially make me liable for things out of my control.
Personally, I think (having indicated to the guy that I'm considering his request) I will offer a loan of £200 but only on proof that he has resources to finance the rest of the costs. I could well be throwing £200 away, but I can't dismiss my friend's creditability since he's always repaid to date. I think I'll make it clear that this is the last time, as these requests are more trouble than anything else.
Thanks again

[pflyers85]

If he/she is a true friend they should understand if you are not comfortable lending them that amount of money. In fact a true friend would never even question you as to why you won't lend them the money. They will accept and respect your decision. If the "friend" gets hostile then maybe you weren't as close of friends as you thought.