indiana

My boyfriend needs a cheap used car but doesn't have enough money. He would need about $1,000 - $2,000. I'm willing to help, but know I need to protect myself in a worst case scenario like bankruptcy or a breakup.

I don't want to cosign on a loan in his name (could ruin my credit if not paid) or just loan him cash (too hard to pursue in court if he defaults, and can written off in a bankruptcy), so I think the best solution is for me to be listed as a lienholder on the title until he pays me back. I'd just put my name on the title as the owner of the car, but in that case -- I'm assuming -- he couldn't register and insure it in his own name.

We'd be buying the car from an individual, not a dealership. If being lienholder is the best answer, how do I do this? Is there a place for me to sign as lienholder on the title when we go to pick up the car and the owner signs it over, or do I need to fill out additional paperwork with the DMV?

I live in Indiana but will probably be buying a used car at an Illinois dealership. From what I've read, I will pay sales tax when I register my car in Indiana, at the IN state rate. But I need a temporary plate from IL (I assume) to drive it home, so do I pay for this at the dealership at the time of purchase? What fees should I expect on top of the actual purchase price?