This is leasing:
A person wants to buy a car which costs 100k. but he has only 25k. He decides to go to a leasing company. They tell him that if he pays them 25k now, he can pay the remaining 75k in installments. Until he has completed paying all the installments, the car will be property of and in the name of the leasing company, and the person will be renting the car from the leasing company. Therefore he (or she) will make/pay periodic lease payments for the car which can be at the going market rental rate, or other suitable benchmark. Simply put, this is leasing and this is how it is being practiced in Pakistan and the rest of the world and there is hardly anything against Islamic injunctions in it.
This is exactly how leasing was also practiced in the times of Prophet Muhammad (PBUH).
This is different from car loans because among numerous other factors:
1. lending is being done against a real physical non-consumable asset (not money)
2. the asset remains the property of the lending party until the end of the lease period, after which the asset is to be sold off by the lending party.
Finance in general, and Islam/Sharia compliant finance products and services in particular, are a very exciting, detailed and interesting subject which deserve to be analyzed in depth.
Sadly, there are so many misconceptions about Islamic finance and regular finance that are ingrained in people's minds.