What is Raylo? Phone and Tech Subscription Explained

Technology moves fast, and keeping up with the latest smartphones often means facing steep upfront prices or locking into lengthy, expensive network contracts. But what about leasing your phone and other tech devices?

One such subscription service is called Raylo, but how does Raylo work? We’ll explain, including the benefits, drawbacks and costs.

What is Raylo?

Raylo is a subscription-based service that lets you lease (aka rent) various electronics, from smartphones to tablets, laptops to smartwatches, games consoles, TVs, headphones, PCs, and even home and beauty products like vacuum cleaners and hair dryers.

You’ll be subscribing as you do to a service such as Netflix, only a device will arrive at your home to use for the agreed period.

Brands available include Apple, Samsung, Google, Lenovo, Sony, Nintendo and Dyson. You can often choose if you want it brand new or refurbished.

Typically, you can rent a device for a set period, varying from 12-, 24- or 36 months, but you can also go on a rolling monthly basis if you don’t want to be tied down for a longer period of time. At the end of the contract, you return the device.

In simple terms, instead of financing a phone through a phone network provider with a bundled SIM plan, Raylo lets you get the hardware separately, without the huge upfront cost if you were to head to the shops and buy one.

The company operates under regulated consumer credit agreements, so you may be subject to things like a credit check before being approved.

Then, for phones, you can get your SIM deal from somewhere else, any network of your choosing, in fact, since the devices are completely unlocked. For other devices, like tablets and smartwatches, you can simply use them for as long as you need them.

Customers have quite a few benefits to enjoy when loaning rather than buying. One of the key benefits is that you have to make lower monthly payments. Rather than paying in full for the device or spending a ton to get it with a SIM contract, you pay a smaller amount every month.

You also get the flexibility to upgrade at the end of the lease term. With smartphone makers releasing new flagships every year, you could just lease the new model for a year and get a new lease for the new model when the new one is launched. You could avoid ever having an ‘old’ phone.

Raylo ensures phones are reused or recycled properly, which is a more sustainable and eco-friendly model than throwing the phone in your tech drawer.

Key Raylo things to know

• What happens if you cancel early? If you don’t cancel within the first 14-days a fee will be charged to end the contract of up to 18 times your monthly payment.
• What you pay for damage – If your device is damaged more than ‘signs of everyday use’ like small dents, scuffs and up to two deep scratches in the screen, then you will be charged however much it costs to repair it, ready for the next customer. However, Raylo says, “Most people aren’t charged at all”.
• What happens at the end of the term? You can upgrade to a new device and contract, keep the device – possibly at a lower monthly fee, move to a rolling contract or end the contract and return the device.

How does it compare to buying a phone?

Fundamentally, the difference between Raylo and traditional purchasing is the difference between access and ownership. When you buy a phone, you pay for the asset itself; when you use Raylo, you pay for the utility of the device over a certain period of time.

That gives you a way to save money and more flexibility.

Buying a flagship smartphone outright requires a significant initial investment. Often, a top-tier model from Apple or Samsung will cost you north of £1,000. In contrast, Raylo typically charges a minimal upfront fee or no fee at all, depending on the credit check and the specific device chosen.

As mentioned, Raylo works on a subscription model where you pay a fixed monthly fee to rent the device. Because you are effectively paying for the depreciation of the phone rather than its full retail value, these monthly payments are generally lower than the instalments on a traditional financing agreement or a high-data carrier contract.

One of the biggest differences is ownership.

Raylo

Most of us are accustomed to the idea of owning anything we get. When you’re done with it, you pass it off to your kids or another family member, or you sell it off for less than you originally paid.

With Raylo, you never own the device. When your contract comes to an end, you have to return the phone – much like renting a hire car, you eventually take it back at the end of your time driving it.

The pros and cons of leasing

This business model comes with both advantages and disadvantages. One of the main advantages is that there are lower upfront costs, especially since shelling out £1,000+ outright isn’t feasible for many people.

You’re also a lot more flexible when it comes to connectivity since the phone isn’t locked in a specific mobile network or a long-term contract. In this way, you’re free to find the best SIM-only deal or eSIM you want and switch networks whenever you feel like it.

Consumers who prefer having the latest tech, leasing makes it easier to upgrade because you don’t have to bother about selling an old phone or trading it on to fund the new one. It’s also worth mentioning that leasing is much better for the environment because Raylo handles recycling devices that are at the end of their life cycle.

In this way, they don’t spend another five years in a drawer before ending up in a landfill somewhere, cutting down on e-waste. Raylo is a certified B Corp, a company recognised for “high standards of social and environmental performance, transparency, and accountability.”

Raylo

How much does Raylo cost?

Low monthly costs might seem appealing, but how much does renting something on explained Phone Raylo subscription Tech