Auto-loan $0 down, followed by $10,000 first month payment. Good idea?

[Anonymous]

I'm looking to finance a used vehicle, $15,000 total. I'm not looking to build credit, just want to pay this car off fast. It was recommended to me that I take a $0 down loan and pay $10,000 in advance. Effectively pushing my due date back into next year. Not sure how this works or if its legal. Assumeing a contract with no prepayment penalties, is this a good idea? I have no idea how to move forward, any info will be helpful!

[Anonymous]

You could definately go that route but I would suggest confirming with the lender your ability to "push payments back with prepayment."

You could either put 10k down and only borrow 5k or borrow the full amount and then put the 10k down...doing it the second way would help with scoring purposes later down the road showing a smaller utilization amount of the original balance.

Make sure the contract you are signing with the bank allows for prepayment without penalty before doing so. My CU allows this, I pay quite a bit extra every month and according to my account portal my next payment isn't due until well into 2019.

[Anonymous]

thanks for your reply.

its good to know this is a possibility!