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I would see an elder law attorney with your question and wish you the best.
I would pass this by an attorney. Worth a few minutes of phone time paid by you.
To explain: at the time of your mother's death, the bank still owned the car, the contract ceased, and any outstanding debt became immediately due. The bank is allowing "her estate" - as represented by you - to fulfil the contract and attain title to the car, but unless the contract says otherwise I believe they don't have any obligation to do that.
Are you listed as a joint owner or as the pay on death beneficiary? If not, you’ll need to look up how to transfer title, if you decide to pay it off.
Another concern would be if there is a Medicaid lien on the car.
If you can pay five payments and get clear title to the car I would expect that you could sell it for a good profit, but you may prefer to keep and drive it.
Your mother didn't own the car yet -- the bank/lender owns it until it's paid off.