You’ve got several questions – let me answer each one. First, I think that is great to try and pay down the principal on the loan if you can. One thing to consider, however, is the interest rate that you are paying for the car loan. If your interest rate is 8% and you hold credit card debt at maybe 18%, it would be smarter financially to apply the extra money you have to paying the credit card debt at 18% or so percent before you tackle the extra principal. If you decide to pay down the principal, you’ll need to work with Regions Bank to make sure you follow their procedure to get extra payments applied to the principal not the interest. If you pay your loan payments online, you can usually make a choice of where to apply the payment. If you write checks, Regions can probably provide you with a form that shows where to apply the payment. If they have no form, be sure to put a sticky note on the check or other note in the envelope directing what the payment if for. Your third question is about trading your current car for another one. I am not sure what to say about that without more information about the car you have and the car you would like. If you are upside down on the loan for the current car, you can make payments toward the principal as we discussed above to make the transfer smoother if you decide to get the new car. Whatever you decide, best of luck to you and thanks for writing!