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In a car loan arrangement, the bank holds the title to the vehicle until the loan is paid off, meaning the bank is the technical owner. However, the individual (e.g., Josh) is considered the actual owner of the car, as they can drive, sell, or refinance it. The insurance company insures the individual, not the bank. Once the loan is fully paid, the bank will send the title to the individual, confirming full ownership. This agreement represents a temporary arrangement where the lender retains the title while the borrower has ownership rights.
