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In a car loan scenario, the buyer retains ownership of the vehicle, but the bank holds the title until the loan is paid off. For instance, if you buy a car with a loan, the bank technically owns the title, but you are the vehicle's owner and can drive, sell, or refinance it as you wish. Your insurance covers you as the driver, not the bank. Once you fully pay off the loan, the bank sends you the title, transferring complete ownership to you and ending the agreement for sale. This arrangement clarifies the distinction between holding the title and actual ownership of the vehicle.