Robot leasing glossary

Illustration of an open dictionary with leasing icons above it and a small desk robot pointing at the page — Illustration by The Robot Radar

Updated 16 October 2026

Home robots are about to be sold the way cars are: by the month. That brings a whole new set of words. Here is every term you will meet, in plain English, with what it means for you. For the offers themselves, see our robot leasing guide.

Ways to pay for a robot

Outright purchase: You pay the full price up front and own the robot from day one. Repairs, upgrades and resale are your problem and your opportunity.
Robot subscription: A monthly fee to use a robot, usually with software updates, support and some repairs included. You never own it. 1X sells NEO this way in the US at US$499 a month.
Robot lease (contract hire): You pay a fixed monthly amount for a fixed term, often 2 to 4 years, then hand the robot back. The robot version of a personal car lease (PCH).
Hire purchase (HP): Monthly payments until you have paid the full price, then you own the robot.
PCP style deal: Lower monthly payments because a chunk of the price is left as a final balloon payment. At the end you pay it and keep the robot, hand it back, or swap to a new one.
Balloon payment: The large final payment at the end of a PCP style deal. Pay it to own the robot outright.
Robot as a Service (RaaS): The business version of a subscription. A company pays per month, per hour or per task and the provider owns, maintains and often operates the robot. Common for cleaning, warehouse and care robots.
Day hire: Renting a robot with an operator for a single event or a few days, usually priced per day. You can do this in the UK today.

Words in the contract

Initial payment (deposit): The money you pay at the start. On car leases this is often three or six months of payments up front. Expect the same on robot leases.
Minimum term: The shortest time you must keep paying. Ending sooner usually costs extra.
Early termination fee: What you pay to leave before the minimum term ends. Always get this number in writing before you sign.
Residual value: What the robot is expected to be worth at the end of the agreement. A higher residual value means lower monthly payments.
Fair wear and tear: Normal marks and wear you will not be charged for when the robot goes back. Scuffs are usually fine. A broken hand probably is not.
Damage charges: Fees for damage beyond fair wear and tear when you return the robot. Ask how pets and children are treated.
Upgrade option: The right to swap to a newer model during or at the end of the term. Very valuable for robots, which improve fast.
Service level (SLA): The provider’s promise on repairs, for example an engineer within 48 hours or a replacement robot within a week.

How the robot works

Over the air updates: New skills and fixes sent to the robot through the internet, the way phones and Teslas get updates. Usually included in a subscription.
Teleoperation (remote assist): A trained person controls or guides the robot remotely for jobs it cannot yet do alone. Some home humanoids launch with this. Ask when it is used and what the operator can see.
Autonomy: How much the robot does on its own without help. Early home humanoids are partly autonomous.
Uptime: The share of time the robot is working and available. A good contract promises a minimum.
Refurbished robot: A returned robot that has been checked, repaired and updated so it can be leased again, often at a lower price.
Total cost of ownership: Everything a robot costs you over the time you keep it: price or payments, repairs, insurance, electricity and any fees, minus what you sell it for.
Break-even point: The month when total subscription payments equal the cost of buying the robot outright. For NEO at US$499 a month against US$20,000 it is about month 41.

Protection and the rules in the UK

FCA authorisation: Firms offering consumer credit or consumer hire in the UK must normally be authorised by the Financial Conduct Authority. Check a provider on the FCA register before you sign.
Regulated agreement: A consumer finance or hire agreement covered by the Consumer Credit Act. It gives you rights, including clear information up front and a cooling off period.
Cooling off period: A short window after signing, usually 14 days for regulated credit agreements, when you can change your mind.
Robot insurance: Cover for theft, damage or harm caused by the robot. Your home insurance may not cover a robot worth thousands, so ask your insurer and check what the lease includes.
Data protection (UK GDPR): The law on how companies handle your personal data. A home robot sees and hears your home, so ask what is recorded, where it is stored and who can access it.

Keep reading

Robot leasing and subscriptions: every offer so far and a buy vs subscribe calculator.
1X NEO in the UK: the first home humanoid sold by subscription.
Robot hire UK: hire a robot for a day for your event.
Robot insurance UK: does home insurance cover a robot, and who insures a leased one.
Robot as a Service UK: what UK businesses pay to rent robots, and who offers it.
UK Robot Price Index: what robots really cost in the UK each month.

General information, not financial or legal advice. We do not sell or arrange finance. How we make money.