I always think of it like they're trying to do real-world video game cheat codes. That's why they're always so weird about language. If they use the exact right code words, the unlock the cheat.
So he wants his friend to get a car loan for a brand new car, then sell the car they now owe a monthly payment on to him for $1000? Why would anyone ever do something so stupid? Is this just a description of how he plans to screw his friend out of a car and a ton of money?
Maybe he hopes the friend would then default on the loan, and tell the bank they can't repo the car because someone else owns it now?
IDK, all stupid because this is why the bank holds the title and has a personal guarantee on the original borrower. His credit will get hosed, the bank will file a lawsuit, and the car will still be repo'ed.
Then this sovcit is welcome to go try to tell a judge why he should get the car back.
I think it's more accurate to say they think their offering to pay in full. The cancelation comes if the loan holder doesn't accept their "special deposit" (which now that I typed it out with quotes I can't shake the association with ejaculation).
I think the "special deposit" shudder is part of the whole "the gubmint has an account with millions of dollars tied to your name" shenanigans they try to play.
I think he thinks by buying the car for $1000 it's his, contract fulfilled he paid for it noone can take it away.
Ignoring how titles work and how you wouldn't be able to get ownership transfered to you with the debt on the original vehicle purchase, he seems to think because he is in the clear (because he bought it legally for $1000) his friend won't still be on the hook for the full price of the contract.
So in his Iala land he would still be screwing his gullible friend over.