PCP - How to overpay and reduce interest, is it worth doing?

IAMIAM

Thats exactly what I have decided to do and the figures match up.
The settlement figure is £22700 which includes a £300 interest charge. 
I have minused the £9668 and £300 charge and it leaves me with £12500 roughly to pay as a lump sum.
I will then have the £9668 sat there and pay £75 a month in interest @ 9% until I am in a position to pay if off around month 36 I think instead of month 48. Its effectively an interest only mortgage over 4 years now. 

My only concern now is if I suddenly want to voluntary terminate the car, have I overpaid if I return the car after 3 years instead of 4.....but I suppose the value will be a little higher....

Goudy

To VT a car you need to have paid 50% of the total amount of the contract.
This includes the GFV and interest.

So yes, you will have paid more than the 50% but why would you VT it if you only owe £9668 on newish car which the experts are saying that is what it will be worth after 4 years?

If you do what you plan and pay off the monthly payment part and leave the GFV plus the interest on that, it leaves you with far better options than VTing it.

You owe far less for it than it's worth, saved a chunk of interest, so VTing it would be madness.
You could just pay off the GFV and sell it or trade it in.

IAMIAM

Agreed.

I have today have paid off 12.5k and that leaves me a GMFV of £9.6k paying £75 a month in interest for the next 46 months which is the GMFV monthly interest of £72 and a little more which equates to £3.5k in interest over 4 years.

I will probably pay off/sell around 36 months so that will become £2.6k interest over 3 years, so it has worked out quite well if I trade in or sell and get around 13-15k in 3 years time.