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In a car loan arrangement, the bank holds the title to the vehicle until the loan is paid off, meaning they are considered the holder of the title, but you, the borrower, are the actual owner. This allows you to drive, sell, or refinance the vehicle as the registered owner, while the insurance covers you as the driver, not the bank. Once the loan is fully paid, the bank sends you the title, solidifying your status as the full owner without any encumbrance.