How does a down payment work?

I am looking into getting an auto loan. This is my first loan so I am new to everything. The credit union I am looking to borrower from, is asking 20% down payment. I have read some articles online but none have really answered my questions. For example, if the vehicle I want is $10,000, I will need to secure a... show more I am looking into getting an auto loan. This is my first loan so I am new to everything. The credit union I am looking to borrower from, is asking 20% down payment. I have read some articles online but none have really answered my questions. For example, if the vehicle I want is $10,000, I will need to secure a 10k auto loan. So, 20% = $2000 for a down payment. If I do hand over $2000, does that mean I owe the bank $8000 plus interest since I asked for $10,000 and downed $2000, it will mean I already paid $2000 towards the initial $10,000 I was asking for, right?? Or do I owe the full $10,000 plus interest?? Sorry for the repetitive numbers, it may sound confusing.

Also how will it look on paper? Will my credit report show a loan for $10,000 or $8000??
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