It isn't worth your headache, not to mention you could do something else with the money upfront and make more interest on it in however long he wants to pay you, or you could buy yourself a newer car, sooner and get all that use out of it, that you might have otherwise had to wait for. There are also laws about loans, and how much interest you can charge before it becomes illegal, so if I were you I would set it up as a purchase price of 8500 with 0 interest paid over however many even monthly payments. You should also put penatlies on it, like $50 for late payments. I still think it's a rotten idea...as someone mentioned earlier, it tells you A LOT that he can't get a loan from his bank, and if his parents didnt help him get a loan from a bank, they sure as hell arent going to help him get one from a private lender.

 

run the other way. It sounds too good to be true. Once he gets the car what's to stop him from making payments? what the stupid little piece of paper? Once you sign the title over to him the car is his. The part about the agreement form with an attorney is just to make you feel better about losing your car.

Or you can tell him to come up woth $6500 in down payment and make 100-200 a month payments. That way you still get the min amount you want. But I still wouldn't do it.