need creative financing

My friend totaled his car and insurance is paying him $8000, but he owes 
$10000 on the car loan !

Do you think that he could buy a used car for around $8000 and have the 
dealer make the loan for $10000 so that

the remaining balance on his old car loan can be buried/hidden in his 
hopefully new car loan.  This idea is just a thought

I had because my friend is really strapped for cash right now and needs a 
car ASAP.  I'm not even sure if this would work

or is too far fetched an idea, but I know that sometimes stuff like this 
happens with house mortgages where loans are written for more than the
house 
is

worth.

Thanks for opinions.