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When you take out a car loan, the bank holds the title, making them the technical owner until the loan is paid off. However, the borrower, such as Josh, is considered the owner of the vehicle since they have possession and can sell, refinance, or use it as they wish. The insurance covers the driver, not the bank. Once the loan is paid off, the bank sends the title to the borrower, officially transferring full ownership. This arrangement illustrates how a car loan operates with the lender temporarily holding the title while the borrower retains ownership rights.
