Purchasing lease vehicle

[mainframe562]

Ok, the story is that I will be purchasing my friends car in which he is leasing, and the only way to release the car is to buyout the car for the remaining amount. So my plan is to get a personal loan and use the vehicle for collateral to get a lower APR, and give it to my friend to buyout. Next he will transfer the title over to my name. Is that a worthy plan I can stick to? I'm a little confused on the part where I put the vehicle for collateral, because I dont own the vehicle yet and I'm using it for collateral, is that possible? And my credit score is good so will it go down if I take out a personal loan?

Much help is greatly appreciated.

[JasonEngler]

Would you consider purchasing this car from a dealer? Is the seller giving you a great deal?

Something just doesn't seem right. Is the car a collectible? Can you afford to buy a car similar to this without the lease option?

[mekish]

you can't use it as collateral if its not yours already.

[momof1in150]

If it is leased then your friend cannot transfer the title to you. He has to turn the car into the dealer and then they can sell it to you.

[Daniel_Shop]

Very good idea. I think it may work.

[safari]

If it is leased then your friend cannot transfer the title to you. He has to turn the car into the dealer and then they can sell it to you.

The dealer is going to jack up the price, so it won't be worth it anymore. The reason he wanted to buy that car at the end of the lease is because of the low residual, but it will only apply if his friend purchases the car at the end of the lease.

[Ima saver]

It does not sound like a good deal to me.