Hi

Good question and one which potentially has a number of implications.

Firstly I am assuming you are taking out 'car finance' as opposed to a car loan. In terms of car finance then as you are the one taking out the car finance contract then as far as the car finance company is concerned then you are the one legally responsible for the upkeep of the finance repayments. To put it bluntly, if you sign any documents, then you are and can't keep up with repayments then the car can be taken back from your friend plus you could end up with a bad entry on your credit record.

The same also applies if you take out a loan to buy the car. Although this is different than 'car finance' which is normally taken out with the car dealer or a specialist car finance company the same applies in terms of the money. As you will be the person responsible for repayments then the lender could take some of your home posessions rather than trying to take the car.

Basically, think through all the implications of taking out a loan on behalf of a friend as it'syour name on he paperwork and you stand to lose out more in the long run if things go wrong.

Hope that helps 

Debt Consolidation Loans