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Are you on the title to the car?
And friend was the one supposed to make all the payments, correct?
Did he have the car while you were making payments?
Ok, if you are both listed on the registration, then you are both legal owners and he can't report it stolen if you retook possession and let someone else use it. An owner can lend out their car if they choose to do so.
And if he is in breach of your contract, you can sue him for all the money that he was supposed to pay if you were just supposed to be a co signer and friend was supposed to be making all the payments.