Mutter Bundle #17: My Longest Muttering to Date. No Flipping Wonder.
28 Apr 2025 08:33
Raylo device leasing. A closer look at the true costs.
With all the song and dance around this Raylo lease-a-device offering, which includes phones, tablets, laptops and whatnot, I have decided to scratch a tad deeper than the shiny glittering surface of it and do the math to find out what the whole thing would cost me in total at the end. Because maths is good. Maths is the key. Maths looks after those pennies that look after your pounds.
So, I decided to go with one of the ubiquitous, classic products that almost everyone knows about and almost everyone wants (ok, the latter could be a stretch, but still): iPhone. And I chose the latest and greatest iPhone 16 Pro Max.
At the time of writing this, I could get the 256GB version of the said device from Raylo, with the lowest monthly fee of £31.49/month that would involve a 36-month lease commitment, and at the end of that 36-month lease term, I would have paid Raylo £31.49 x 36 = £1133.64 in total. And the Apple retail price for the exact same device would be £1199. So, both figures are very comparable, and I think, with such a minor difference between the two, it would be safe to say that over the 36 months of leasing the device from Raylo, I'd end up paying the device's market value to them.
In order to make my quick research a bit more "scientific", I have decided to look with Vodafone to see what I'd end up paying for the device if I took a contract with them right away for the same 36 months. For the iPhone 16 Pro Max 256GB, the upfront cost would be £50 and the monthly payment would be £29, which, at the end of the said 36 months would total to £50 + £29 x 36 = £1094. Hmmm. Even less compared to buying it from Apple, and, in both Apple and Vodafone cases, I would, most obviously, own the device.
Now, why the emphasis on owning the device, you may ask? And I'll answer — it's because, by the looks of it (I am open to corrections, of course), with Raylo, at the end of the 36-month lease term you don't own the device. Here is what their website says:
And here's me going "waaaait a minute!". So, if my understanding is correct, after ending up paying Raylo for the device what seems to be a price comparable to its market price, I do not get to own the device, and should I wish to, I would need to discuss my options with them to find out what they would charge me on top if I wanted to keep the device. And, at the time of writing this, there does not seem to be a clear fee structure to use as a guide.
Very, very odd, if you ask me. And, especially compared to a traditional phone contract with a mobile provider, not that cost effective.
To clarify, I asked Raylo's AI chatbot the following:
I have been doing some research and noticed that, for most devices, the total amount paid over a 36-month lease term is roughly equivalent to the device’s market value. However, as I understand it, at the end of the lease period, despite the total spend being approximately equal to the device’s retail price, ownership of the device does not automatically transfer to the customer. And if a customer wishes to keep the device, as far as I am led to believe, an additional fee must be paid.
I have been unable to find any clear information regarding what that fee would be or how that fee is calculated. This seems to me a very important factor when deciding whether or not to proceed with your product, particularly when comparing it to traditional contract or instalment offerings, where the device typically becomes the customer’s property once repayments are complete.
Would you be able to provide clarification on what the end-of-lease purchase fee would be?
And here was their answer:
07:35 AM | Raylo AI: We understand you're interested in the end-of-lease purchase option for our devices. While we can't provide a specific fee in advance, here's how it works:
If you decide to purchase your device at the end of the lease (and we agree), we'll charge a purchase price. This price reflects the cost for us to replace the device in our inventory. The amount is based on the fair market value of the device at that time, which means it can change.
It's important to note that the monthly payments you've made during the lease are specifically for renting the device and don't contribute to the purchase price.
If you're interested in potentially purchasing your device, please contact us closer to the end of your lease term. We'll be able to provide more specific information at that time.
So. Paying the market price, give or take, to have the device for 36 months, and still not own the device, unless willing to pay a fee, the amount (or formula) of which isn't even disclosed in advance? Ummm... I'll pass, thanks.
I mean, I could probably think of one or two scenarios where Raylo's offering would make sense, especially if their acceptance criteria aren't as strict from the credit scoring point of view compared to other financing providers (I don't know whether it actually is or not). I mean, if Raylo's criteria aren't that strict and you absolutely must get your hands on that device right now, this could probably work for you.
But still. Not what I would personally call a deal I'd go for, at this moment of time at least.
02 May 2025 08:53
Hear that roar? That's a new competitor announcing its entrance into the mobile network market across the UK, Germany, and potentially other countries. The name, however, is far from unfamiliar. It's Revolut, a well-established brand in the fintech sector.
For those in the UK hopping on the waitlist, the introductory offer most definitely looks like a steal: £12.50 a month for unlimited UK data and calls, plus a tidy 20GB of roaming across the EU and US. Bargain-basement territory, I love me a good bargain.
Clearly, it’s going to be a MVNO setup, so the big question is: which network are they piggybacking on? That rock-bottom price smells a lot like Three (which will eventually become one with Vodafone, mind you). But nothing’s been confirmed at this stage, so we’ll just have to watch this space.
Personally, I’m somewhat caught between excitement and scepticism. Time will tell.
Source:
03 May 2025 14:40
St Andrews, Scotland.
