The note can be just the fairly simple and straight forward obligation to pay and the terms of the payment, due dates of payment or maximum due date on the loan and specification that in consideration
for the loan he is using his vehicle as security and will grant you a lien on the vehicle. You also need to specify that he must keep adequate insurance on the vehicle and provide you with copies of insurance on the vehicle during course of the loan and that you need to be listed with the insurer as lienholder. Also, specify that if the insurance lapses, you will obtain insuarance at his cost which would be owed to you by him (this covers you in case of accident). You then get the lien form from the state DMV and complete that to be placed on the title of his car as a lienholder. The process is fairly simple actually.
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