I don't think that's quite right, you own the vehicle legally and you owe the bank the loan. However as soon as a repossession takes place the legal title to the vehicle does change.
Source: Trying to get a bank to remove the lien after it’s fully paid off can be a real source of frustration.
The way all of this works varies by state though. Some states issue a title electronically when the lien is released.
Kinda nice when you trade in a car you still owe a bit of money on, as you don't really need to bring anything with you other than the key and your drivers license; the dealer does all the work getting it cleared and transferred.
I guess it's different mostly in name though, they still have strong rights to the vehicle.
I recall buying a used car where the bank lien had to be removed prior to transfer.
P.S. Looking around a bit there is a lot of variation on how this works depending on locale. So I guess lease vs. finance is just another way things can differ out there.
No doubt it would be fascinating to see how each state does it. I only have experience with a few.
You are the owner, they simply have a lien on the vehicle which is noted on the title. Once you pay off the loan, they send you information to get the lien removed and a clean title.
Bottom line, the government just makes it obscure and difficult to determine the real dynamics between the two parties, and the weird interaction it may have with existing laws governing theft/ownership.
Some states in the US also handle mortgages like this.
Car loans are secured on a car. If you want to just borrow money with no security you can get a (likely far more expensive) unsecured loan if the bank judges this to be a good risk, or take an overdraft on a current account or use a credit card, all unsecured debt.
No, the listed owner on the title is the owner, no matter who has possession of the title.