AA Loan - worth settling early?

Hi all,

A couple of years ago my gf took out a car loan with the AA. It was advertised at 2.9% but when she was approved that jumped to 12.9%! She went ahead with it as she wasn't sure whether she'd get approved anywhere else after applying on the AA.

In any event, 12 months after the loan was taken out the yearly statement comes through and at the top it shows the amount borrowed of £10,000 and immediately below £3,405.80 in interest.

So it looks as though they applied the entire amount of interest for the life of the loan at the beginning? Question though, we've just had the 2nd year settlement through saying she still owes £8,043.48, but if we rang up today and asked for an early settlement figure presumably it would be lower as we would be refunded some of the interest charged at the start?

Thanks