Can I change my monthly auto loan payment by putting down a big lump sum?

"I want to buy a $10,000 car. I have $2,500 for a down payment, but at the end of the month I'll have $5,000 to put down.

Putting $2,500 down makes my payment around $200 a month, while putting $5,000 down makes the payment only $125 a month.

If I buy the car with the $2,500 down payment, can I lower my payment later by paying the $2,500 lump sum a month later?"

Answer provided by
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Eric Schad
Answered on Jun 03, 2021
“No, making a lump-sum payment later won’t change your monthly pay rate. What it will do is lower the principal you owe and effectively shorten the length of your loan, saving you money in the process.
When you do the calculations, you might pay a little bit more in interest with the $2,500 down payment, but it will almost certainly be negligible. Don’t stress. Buy the car and you’ll hardly pay more.”
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