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When purchasing a car with a loan, the bank holds the title while you are the owner until the loan is paid off. Although you don't possess the title, you can still drive, sell, or refinance the vehicle, as your insurance covers you as the driver. The lender retains the title until you fulfill your payment obligations, after which they transfer the title to you, granting you full ownership without any agreement stipulations. This arrangement highlights the distinction between holding the title and actual ownership of the vehicle.