Dear Terry,
How does the down payment work when you apply for a loan from your credit union?
-- Chanta

Dear Chanta,
It works just like any other loan. You pay the down payment to whoever is selling you the car and cover the rest of the cost with a check from your credit union.

Here are this week's reader questions:

• $100 fill-up coming to pump near you • Do I have to pay taxes on a car I'm using overseas? • How can a co-signer protect his rights? • Do down payments differ at credit unions?

If you have a question for Terry, e-mail him at Driving for Dollars. Save money on your car -- sign up for Bankrate's new weekend Car & Money newsletter