-The amount that you borrow, and the remaining balance during the life of the loan, is called the "principal." The principal can be paid off at any time prior to maturity, but as long as it is outstanding, it will incur interest, which is included in your monthly payment. -Until the loan is paid-in-full, the lender holds the title to your vehicle as security for the loan. When you pay off the loan, the title is sent to you, the car is yours and you owe no further payments. -The advantage to getting a loan for your car is that you can do whatever you want with it. This means you can paint it, raise it, lower it, pinstripe it, make it hop, put in a new stereo, fix the dings and dents or not, sell it, or drive it forever - as long as you've made your loan payments. However, as with any car loan, if you fail to make your payments, the financial institution could repossess your car