Question about down payment on a car

[Travis-84]

I was in an auto accident today (I'm ok, just minor pain that I'm sure will go away with a few days of rest), but my car is totaled, so I'm looking at getting an auto loan.

I'm guessing insurance will give me 4k or so.  I'm can put down 3k easily, or so, and I'm looking at getting a 10-12k used car (including taxes).

So although I can put down 7k, is there any advantage to putting down less, lets say 2k, then as soon as the first payment is due, making a 5k payment? 

Assuming a 24-36 month loan, wouldn't the 5k payment put me 12-18 months ahead, giving me some cushion if I were to miss a payment?

This only downside to this is if a smaller down payment causes my interest rate to rise, then there is a cost/benefit, it also assumes I'll be approved with a small down payment.

I have an Equifax score of 765 (checked today), and I have no reason to believe my TU and Experian would be much different, but I'll pull a report and check those out today.

[HoldingOntoHope]

I would absolutely put a lower down payment and then make the payment after the loan. With your credit score a large down payment will not be necessary. And like you said having the payments pre-paid is just a smart financial decision. The large payment will still reduce the amount that you are paying interest on so it works all the way around.

[Kratos-TM]

Love this idea. It does have some logic to it....

[Dustink]

With your credit score you shouldn't need a large down payment.

I would say put 20% down then put the rest of the money to better use.