Leasing contract is when you pay for a number of months to drive the vehicle, it is never owned by you. You are agreeing to drive the car for a set number of months, this usually has the smallest monthly payment option if you're trying to have a low monthly payment. A yearly mileage that you agree to pay and stay within is also on the contract, if you go over your mileage an additional fee typically .50 cents per mile will be added to the lease return. If you are unable to make car payments, you may experience having your car being repossessed or repo'd. As in, someone will come and take the vehicle without your permission and on your property. This is usually for people who do not want to worry about repairs and like to drive a new car every 3 years. In the case of an accident, your insurance will cover you and the vehicle. If the vehicle is a total-loss, as in your vehicle damage is greater cost to repair than it's worth, the leasing company will be paid for the worth of the vehicle in full. This is usually done for recent or newer year vehicles.
Finance Contract is when you are paying for the car's worth with each monthly payment, in a determined number of months. 60 Months is a typical term length, but you can go up to as high as 80 months I believe. Note that the higher number of months, the greater the interest is even though your payments may be smaller. The lower number of months is best because of lower interest. After this contract is over, you will own the vehicle and just have to pay for insurance. You will also be able to experience vehicle maintenance, as comes with age. The first 5 years, you may only need to do common oil changes, rotating tires and air filters. Depending on how much you drive as well, but after 5 years you will typically start seeing some maintenance is needed. In the case of an accident, your insurance will cover you and the vehicle. If the vehicle is a total-loss, as in your vehicle damage is greater cost to repair than it's worth, the insurance company will pay you for the vehicle in full. Or you can choose to repair the vehicle and gain the "Salvaged" word next to your title. I have not owned a salvaged vehicle yet, so I can't comment on the insurance for that. This is usually done for recent or newer year vehicles.
Third-Party Sale is when you buy a vehicle from a stranger, family member or a friend. Websites that allow owners to post vehicle ads like craigslist, allow us, the "third party" to sell or buy vehicles from each other. We just need the pink slip on-hand, which is the vehicle title. The vehicle title or pink slip is a legal document which shows the name of the owner on it. This is how you can avoid buying a stolen vehicle, by asking for the pink slip or the vehicle title. If they do not have this legal document, just know that you may be buying a stolen vehicle and wasting your money when it gets repossessed, or you get pulled over by the cops at gun point. This is usually done for older cars, that the value of the car has dropped significantly. Making older cars a great choice for a first car if you don't want to spend too much and to learn how to drive. A cheap car has much more leeway on getting dents and dings on it, than a new expensive car. This can be a bargain or a bad deal, depending on the condition of the vehicle. Since it is not a new vehicle, it is up to you or a mechanic that came with you to inspect the vehicle before buying. If it's in great condition and way below retail value, you have a bargain. If it is in bad condition and you're paying near retail value, well that is a bad deal. Kelly'sBlueBook or KBB is a great tool to use on determining price and value for vehicles of all ages. If the vehicle was in an accident, your insurance will cover the cost of repairs or if a total-loss; you will be paid for the full amount they think its valued at.
Family/Friend Lending/Gifting is when you have been given a vehicle, either to borrow/lend or it was gifted to you. If the vehicle is being lended to you, in which case you are given permission to drive it, but you do not own it. You do not have to pay for the vehicle or the insurance, unless that person and you made an agreement to do so. If the vehicle was gifted to you, you will then be given the title and need to start insuring the vehicle in your name.
Renting a Vehicle is when you go to either a car rental dealership or a moving company dealership to borrow a car for a number of days. You will need to be 25 years old in California, probably put down a deposit of $100-200 and then pay for each day the car is rented for on the spot or upon return. Typically, they tell you to note the vehicles condition that you took it in and the amount of gas inside the tank. You use the vehicle for your number of days and then return it with the same amount of gas you picked it up with. If you had new damage to the rented vehicle, they would make you pay for the damages unless you purchased some kind of renters insurance with them or use a credit card benefit for rental coverage. I would take pictures of all 4 sides of the vehicle and inside the vehicle, so you have reference when you return... if damage was actually new to the vehicle. Most vehicles at rental businesses have significant cosmetic damage to them, so do not expect to get a pristine looking vehicle when you rent. This is typically needed when you want to use another car for a road trip or you need a big moving truck, like U-Haul for example, to move your belongings from one home to another.