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The video explains the concept of ownership in a car loan scenario. When you buy a car with a loan, the bank holds the title until you fully pay off the loan, making them the title holder while you are the actual owner of the vehicle. Although the bank has the title, your insurance covers you as the driver, not the bank. You retain ownership rights, allowing you to sell or refinance the car. Once you complete your payments, the bank sends you the title, transferring you to full ownership. This arrangement exemplifies how ownership works in the context of a car loan.