Car financing options are two of the most common ways to purchase a car. A LEASE is an agreement between a car owner and a lessee, where the lessee pays a monthly fee to use the car for a predetermined amount of time. A LOAN is a type of debt that is secured by the car itself, and the borrower pays back the LOAN in installments over a period of time. Both of these options provide a way for people to purchase a car without having to pay the full cost upfront.