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The video explains vehicle ownership in the context of a car loan. It emphasizes that while the borrower (e.g., Josh) possesses the car, the lender (bank) holds the title until the loan is paid off. Although the bank technically owns the title, the borrower has full rights as the vehicle's owner: they can drive, insure, sell, or refinance the car. The video clarifies that the insurance is for the borrower as the driver, not the bank. Once the loan is fully paid, the bank provides the title, confirming that the borrower is now the complete owner, transitioning from an 'agreement for sale' to full ownership.