The road to owning a new or used car can sometimes be a challenging course - especially for first time buyers. Here are some answers to questions which may help you understand what really makes owning a vehicle legal given by expert Eric Chisholm, Service Manager and 16 year veteran of the car retail industry.

CBE:    Does the consumer become the legal owner of a car once a contract is signed?

EC:     Although it is true that by signing a contract you have taken the first step to legal ownership, it is also true that if you have agreed to finance your vehicle you are only considered the legal operator until you have met your financial obligation to that vehicle. Once you have fulfilled your financial agreement, you are granted a title (a legal document stating ownership) and then considered the owner.

CBE:    Is there a difference in the ownership process when buying a used car versus a new car?

EC:     The process of legal ownership is the same. In either case, until you have purchased that vehicle by one hundred percent of the negotiated price, you are not yet the legal owner.

CBE:    When leasing a car, does the leaser own the vehicle once the term has expired?

EC:     No. On a car lease, the consumer will never own the vehicle unless they decide to purchase it at the end of their term. Otherwise, a leaser is required to return the car to the dealer and either lease or purchase another vehicle. If the leaser opts to purchase, the same process applies; they can only become the legal owner once all financial obligations are met.

CBE:    If a co-signer is involved, are they considered a legal owner of that car?

EC:     A co-signer is considered a legal owner of a car. Many co-signers assume that they are only securing a loan for the primary signer, not realizing that any and all commitments regarding that vehicle will fall on the them by not only the financier but by the state as well. Check with a financing company such as MyAutoLoan.com for details on your rights and responsibilities before entering this type of agreement.

CBE:    What is the quickest and easiest way to becoming the legal owner of a car?

EC:     Pay cash. The sooner your car is paid for the sooner you will own it.

CBE:    Becoming the legal owner of a car is a big step. What are some things to consider?

EC:     First, know what you can afford. The biggest mistake most consumers make is not properly budgeting. Understanding your current debt, credit score, annual income and monthly expenses can help you make the right financial choice and will help guarantee ownership. You can obtain a copy of your credit report at OnlineCreditInfo.com. Second, there's more cost than just the car. Many consumers do not consider taxes, insurance and maintenance on a vehicle. Make sure you have budgeted for these long term expenses. That will help you maintain ownership.