dunc
i bought a beko dish washer twelve months ago almost .Beko and an insurance company have written saying I can insure it against breakdown both offer a discount of around £12 if I pay by direct debit rather than a one off payment . Why is this?
what is wrong with cash
1 Answer
ROMOS
Insurance is not a good thing to pay by DD, you are set to a certain APR whereas if you pay upfront you'll get the current APR that the company takes which is often less than the rate for DD. So it pays the insurance company to advise you to take DD.
| 11 years ago. Rating: 3 | |
I don't fully understand your answer please explain in idiot speak please
If they take it by DD they might charge say 19% APR, whereas a one of payment might be a lot less, say 12% APR,thereby it's you that makes the saving over the year.
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