what is repo and reverse repo?

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what is repo and reverse repo?

2007-01-05 01:59:55 · 2 answers · asked by abd 1 in Business & Finance ➔ Credit

2 answers

Repo is when ,for example a car is taken back by the finance co. because of failure to make payments. reverse repo is paying the loan up-to-date plus additional fees, after repo and getting the car back.

2007-01-05 02:25:52 · answer #1 · answered by nj2pa2nc 7 · 0⤊ 0⤋

a repo (repossession) is when a company takes back possession of their property for lack of payment. Example: you buy a car & miss several payments, the finance company comes to take back the car in hopes to resell it to someone else to get back the lost money.

I have never heard of a reverse repo. I would only guess that they are paying you to take the car b/c it is so bad! LOL

2007-01-05 10:18:00 · answer #2 · answered by ricks 5 · 0⤊ 0⤋