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RCI Hire Purchase

Hi
I hope someone can help explain my hire purchase figures from RCI

We bought a car for £7300, paying £2500 deposit.
Credit was £4800,
Interest £1200
Option to purchase £298
Total to pay 8796

there are 60 payments of £99.98, we have paid 18 of these. We have had a settlement figure today of £4250 via a garage where we were hoping to trade it in. Does this seem correct? It means almost all of the interest of £1200 has been paid in the first 12 months. Surely if we settle in full now we should get a better discount on the interest liable for the full term?
This is the first hire purchase agreement we have used.
thanks in advance

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