Raylo

Raylo is a British electronics leasing company which offers consumers temporary use of smartphones, tablets, laptops, and other electronic devices on monthly subscription terms. Unlike payment plan models where the consumer acquires ownership at the end of the agreement, Raylo customers do not own the device at the conclusion of the lease, despite often paying more than the retail value of the item over the contract period.

The company was incorporated on 5 September 2018 under the name Xylofi Limited, rebranding to Raylo Group Limited in March 2019.^[1] It is registered at 5 New Street Square, London, and is authorised and regulated by the Financial Conduct Authority under Firm Reference Number 841488.^[2]

Raylo offers new and refurbished consumer electronics on subscription terms ranging from monthly rolling contracts to fixed 12, 24, or 36-month agreements.^[3] The company performs a soft credit check during application, with a full credit search conducted only upon approval.^[4]

At the end of a fixed term, customers may choose to upgrade to a new device, continue paying on a rolling monthly basis, return the device, or contact them to "discuss" purchasing the device.^[5] The purchase price is determined by Raylo based on the device's residual market value at the time of purchase, rather than being a nominal fee. A Financial Ombudsman Service decision documented one customer being quoted £530.99 to purchase their device during a 24-month contract, or £269.99 after the term concluded.^[6]

Early cancellation during a minimum term incurs fees of up to 18 times the monthly payment, depending on how far into the contract the customer has progressed.^[7] A 14-day cooling-off period permits penalty-free returns.

Returned devices must meet Raylo's "fair wear and tear" standards, which permit minor scratches and small dents but no cracks of any kind.^[8] Devices returned in a condition below this standard are subject to repair charges.

Raylo maintains a rating of 4.5 out of 5 stars on Trustpilot from approximately 21,000 reviews, with positive feedback commonly citing fast delivery, ease of ordering, and lower monthly costs compared to network contracts.^[9]

However, negative reviews and independent analyses have raised concerns about their business model:

• Total cost of leasing: Independent financial commentators have questioned the value proposition of device leasing compared to outright purchase. Household Money Saving concluded that leasing "rarely stacks up" financially, estimating customers are typically £200–400 worse off compared to purchasing on interest-free finance and reselling the device.^[10] Compare and Recycle calculated that leasing an iPhone 15 Pro for four years would cost approximately £565 more than buying outright.^[11] Proponents of the model note it may benefit consumers who cannot afford large upfront costs or prefer not to manage device resale.^[12]

• Ownership expectations: Some customers have reported confusion over the lease-versus-purchase distinction, arriving at the end of their terms unaware that they did not own the device and that purchasing it would require a substantial additional payment (or, in some cases, would not be available at all).^[13] The Financial Ombudsman has not upheld complaints against Raylo on these grounds, finding that the company's agreements clearly constitute hire agreements rather than credit sale agreements.

The following table shows example subscription costs for selected devices on a 36-month term, compared to typical UK retail prices. Prices are illustrative and subject to change.^[14]

At the end of a 36-month term, consumers do not own the device. The total amount paid may be less than, similar to, or greater than the retail price depending on the device, but in all cases the consumer must either return the device, continue paying monthly, upgrade to a new lease, or pay an additional purchase fee to acquire ownership.

Raylo offers devices across several categories:^[19]

• Smartphones: Apple iPhone (including iPhone 17, 16, 15 series), Samsung Galaxy (including S25 series), Google Pixel (including Pixel 10)
• Tablets: Apple iPad, Google Pixel Tablet
• Laptops: Apple MacBook Air, MacBook Pro
• Wearables: Apple Watch, Samsung Galaxy Watch
• Gaming consoles: Sony PlayStation 5, Nintendo Switch
• Audio: Apple AirPods, Bose headphones
• Home appliances: Dyson vacuum cleaners and hair care products