But the finance company is holding title to the car, so they own it until such time as you satisfy the amount they paid the manufacturer for the car.
This isn't the US. It isn't analogous. I own the god damned car. It's my property, registered in my name. All the legal documents say "mojo-chan" on them. The DVLA has my name as the registered owner. I am fully liable as the owner under the law.
The finance company has a debt they are owed. They lent me money, not a car. The finance agreement that set up this loan stated that it can only be used to pay for that specific car, and is secured against that car so if I fail to pay it they can get a court order to take ownership of it. They have to go to court because they don't own it, and can't just walk off with other people's property.
They like it that way because if the car gets written off it's my problem. Their loan is still good, it's my property that was trashed. Otherwise if they still owned it I'd just say "too bad, your car is now a small metal cube lol" and leave them to it.
Edit: I was a bit annoyed... Believe me bro, I own it. That's how it works here.
Chill... I am not saying you don't understand finance or trying to support the other guy in his quest to say that, I am more curious about the differences in how things work there. I live part time in the USA and part time in the UK. I haven't run into the scheme you mention in the UK before, but then again, I've never financed a car there. So if you don't mind me asking, are your payments equal to the totla cost of the car divided by the # of payments, or equal to the difference between the total car price less the buy-out amount and that amount then divided by the number of payments?
If the former, it seems you would be tying up money unnecessarily compared to a lease (which would be good for the finance company, and bad for you). If the latter, then it appears to be analogous to a lease in the USA, just with a different name. Perhaps there are different finance laws that make "leasing by another name" how it's done there.
FWIW, I leased my most recent car. My name is on the registration, and the insurance, and I have to pay for that insurance as well as the taxes and such. I also have to maintain the car and if I get in an accident, I have to fix it and if I was at-fault, I could be sued. The only difference, really, is that at the end of my lease term, I must decide to either keep the car (in which case I must pay the finance company the agreed-upon residual value on the vehicle to get titled ownership), or I can turn it back in to the dealer and walk away. Or, my third option - if the current market value is in excess of the amount agreed upon for which I may buy the car is to "buy it" and then immediately "sell it" to the dealer. In practice, this is a paper transaction and merely results in the dealer cutting me a check for a portion of the equity I have in the deal, and they do this because otherwise the car would revert to the finance company who may or may not choose to offer it to the dealer.