Since any map projection is a representation of one of those surfaces on a plane, all map projections distort. Every distinct map projection distorts in a distinct way. The study of map projections is the characterization of these distortions.
If you have the car as collateral, the loan company will take the car. The co-signer is not automatically put on the title, that would be between you and the co-signer. My father co-signed a loan when I was younger, and my name was on the title, not his.
If you cannot repay the loan, the title lender will take your car. They will sell it and keep the difference between what you owe and what the car is worth. They typically will lend you only 20% of the car's value. So, they stand to benefit even if they have to sell your car.