How to handle lease-to-own scenarios?

I ocassionally provide customers with hardware on a lease-to-own basis. They pay 30% (of the product cost) as an option fee, and then make a payment of $the hardware cost/12 every month for a year.

For example, on $1000 of hardware, they would pay a $300 as an option fee and then $83.33/month for 12 months. After 12 months, the hardware is theirs. If they decide not to keep the hardware, they lose all their equity and the hardware remains mine.

How would I handle this in ERPNext as far as invoicing and accounting goes? Should I just create an Item called something “Hardware Equity Payment” and then create fixed assets for the hardware, then if they make all of the payments, disposition the hardware as sold?