Meaning of the word "hire purchase" in English

What does "hire purchase" mean in English? Explore the meaning, pronunciation, and specific usage of this word with Lingoland.

hire purchase

US /ˈhaɪər ˈpɜːrtʃəs/
UK /ˈhaɪə ˈpɜːtʃəs/

Noun

a system by which a person pays for an item in regular installments while having the use of it, but does not own it outright until the final payment is made

Example:
We bought our new car on hire purchase.
Many consumers opt for hire purchase to afford expensive goods.