Raylo is shaking up the market. Instead of buying your tech, you can lease it instead. And with the monthly payments often lower than when you buy from other retailers, it may seem like a tempting offer. But be warned, it will usually leave you worse off.
10-second Raylo review
On the face of things, it looks like a cheaper way to get access to the latest tech. In fact, it will cost you more over the long term. This really is for those who want to change their devices regularly.
Raylo
I love my technology, but it has a habit of dropping in value quite drastically. And I remember being told that if an asset increases in value, buy it, and if it drops in value, lease it.
And that’s exactly what Raylo offers. The chance to lease your tech and then hand it back once you’re finished. And if the monthly price looks attractive, then why not? But the truth is, the value is nowhere near as good as it initially looks.
What is Raylo?
Raylo is a company that aims to make technology more affordable. Instead of the traditional method of selling items outright, Raylo leases them to customers instead. At the end of the lease term, the customer has the choice of buying the item outright or returning it.
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Is Raylo safe?
Raylo has been operating since 2019 and has well over 7,000 reviews on Trustpilot. It is owned by Raylo Group Limited, which is based in London and is authorised and regulated by the Financial Conduct Authority.
Is there a credit check?
Just like taking out a mobile phone contract, you will be credit-checked if you decide to rent a device through Raylo. However, they will only perform a soft search initially, so it won’t show on your credit report. Only if they approve your application will they perform a hard credit check, before sending out your device.
What kind of devices are available?
Raylo focuses mainly on mobile phones, primarily Apple and Samsung, although other brands are sometimes available. But you will also find tablets, laptops, headphones and watches available to rent on their website.
Raylo offers a mixture of brand-new and refurbished items.
What are the benefits of Raylo?
The main benefit of using Raylo is the fact that you can constantly upgrade your technology without the need to sell on your old items. Lease terms are usually for between 12 and 36 months, so it can be tailored around to what is suitable for you.
And if your device should develop a fault, then it’s down to Raylo to sort out. They own the phone, so it’s their responsibility to fix it.
Raylo’s refer a friend scheme
If you become a Raylo customer, you can join their rather generous referral scheme. For every friend that you recommend, once they take out a lease, you will both earn a £30 Amazon voucher.
Will Raylo save you money?
So, here’s what we all want to know. Will leasing a device work out cheaper than buying it outright? Of course, with so many different gadgets and prices, it can be a little difficult to work out. However, I took a look at two of the most popular phones on the market to see if it was cost-effective to lease rather than buy.
iPhone 14 Pro Max
Available to lease from Raylo for £40.54 per month, the lease over two years will cost you a total of £972.96.
If you wanted to buy the phone outright from Apple, it would cost you £1,199. 0% finance is available, and you would pay £49.95 per month over two years.
As you can see, leasing will save you £226.04. But there’s one important factor you need to consider. With leasing, you’ll usually return the phone and start again. Buying the phone through Apple means that you’ll own the phone at the end.
And taking a look at two-year-old iPhones on eBay, those with faults sell for around £250, whilst perfect condition handsets will fetch £450. So, if your phone is in average condition, you can expect it to be worth around £350.
In that case, purchasing your phone will mean you’ll be almost £124 better off – which is over 10% of the purchase price.
Samsung Galaxy Z Fold 5 256GB
This Samsung phone is available for £41.74 over three years from Raylo, with a total cost of £1,502.60.
Alternatively, it can be bought directly from Samsung (again with 0% finance) for a monthly cost of £48.59. Over three years, this comes to £1,749.
Leasing will mean that you spend £246.40 less over the three years. But, again, you need to consider that if you buy, you’ll have a handset to show for it.
Now, the Fold phone is quite new on the market, so it’s difficult to get an accurate price for what it will sell for after three years. But even if the device lost over 70% of its value over three years, it would still be worth over £500. That means buying will see you over £250 better off.
So, avoid Raylo then?
This really depends on what you want. If you’re looking at the long-term and want the best value for money, buying your technology is the way to go. Most mobile phones and other gadgets retain a decent value, even after a few years. And if you don’t want the hassle of selling privately when you’ve finished, there are plenty of places to trade in your tech with minimal hassle.
Why not take a look at the best places to sell your old phone?
But, if you want to change your technology each year and not get tied into a longer contract, then leasing will be your best option. But you will pay for the privilege.
You just have to weigh up whether it’s worth it.
What other people say
In general, Reylo has very positive reviews on Trustpilot and scores 4.5 out of 5 from over 7,000 reviews. Reviewers say they are easy to deal with and have good prices. But, some customers complain about poor service and delay in receiving their orders.
My Raylo review conclusion
I know that it’s commonly said that if an asset appreciates, buy it and if it depreciates, lease it. And that’s why new cars are commonly leased. But the difference is, they are usually worth £30,000+.
The gadgets on offer from Raylo are worth far less and can often be bought outright by paying just a few pounds extra every month.
This isn’t a site for me, but I can see the attraction to those who want the best tech available. If that sounds like you, click on the button below to see what’s available.
FAQs
Do you have to pay a fee if you damage a phone with Raylo?
This depends on the amount of damage. If it’s not classed as reasonable (2 or fewer deep scratches on front glass that are less than 3cm in length), you may be charged.
Can Raylo affect your credit score?
Yes. It’s the same as taking out a mobile phone contract. If you maintain payments, then your credit score will go up. However, it can also go down if you miss a number of payments.
How much will you have to pay if you decide to keep the device?
This is difficult to say as it depends on the device and its age. There was a review on Trustpilot stating that Raylo wanted £307 for a phone, when it could be found for £235 on other sites.