Can I insure a car leased by my friend that I will pay for him to buyout the lease?
The lease on the car will spell out whether or not the lease is transferrable or if your friend can end it early by paying off the balance (sometimes called an early buyout). The lease also should be reviewed for provisions regarding obtaining title to the lease when it is ended. Not all lease contracts allow buyouts before the lease expires and some contracts impose restrictions on when the lessee can exercise a buyout option.
Title to the car cannot be changed away from the lender (as lien holder) until the buyout is complete. There is a certain amount of risk in paying money in anticipation of the title being released by the lien holder.
If your friend is successful in getting the leasing company to accept the payoff and transfer title to him, then it is not complicated for him/her to sell the car to you. This typically is done through a bill of sale and then a title transfer from the government agency where the car is registered. The bill of sale would be proof of ownership that allows the title to be registered with the new owner.
Most automobile insurers will not issue a policy on a vehicle to someone other than the owner or lessee. Therefore, it may be difficult to obtain insurance for a car you do not own. However, your friend's policy may cover you if you are operating the vehicle with his permission. He should consult with his insurance carrier for more information.