Legal Question in Real Estate Law in California

Most likely, the lender will elect to repossess the vehicle. You should receive prior notice per Civil Code section 2983.35. which is part of the Motor Vehicle Finance Act, sometimes also known as the Automobile Sales Finance Act or Rees-Levering Act. Make sure the lender knows where to contact you with notices. At that point, I'd contact the lender and see what you can work out to avoid, to the extent possible, damage to your credit rating or liability for any deficiency (shortfall) after repossession and re-sale. The outcome here may depend very much on how much equity is in the vehicle when it is sold.

Mr. Whipple is right. Stand by to see the truck get repossessed. (Were you planning on hiding it? That's why you wanted it, even though you weren't making payments either.) If the truck does not satisfy the car loan, you could be sued on the promissory note you cosigned. If the lender doesn't name your friend, you can name him as a party to the action.

To defend or settle the lawsuit against you after repossession and sale of the vehicle by the lender, and you can counter sue the friend for your damages.