Can car dealer do this?

[SweetieBaby]

Saw a used car in a dealer's on Thursday, ideal for my daughter who has just passed her test. Asked every question I could think of regarding service history, paperwork etc. The only issue raised was that it was missing "a couple of service stamps". Phoned Friday to check it was ok to collect Saturday and told them I was about to insure. Told everything was good to go. Husband phoned them to ask for ref number on V5 so we could tax itand the salesman said he didn't have it to hand but would give it to us on Saturday and we could ring DVLA to tax it.

Went to garage to pick it up Saturday, filled out paperwork, paid for car and then got given a form to tax car at local post office. Turns out he doesn't have the V5 and says it was destroyed in a recent burglary - has another 7 or 8 cars like it. Tried to tax it but post office can't do it without V5 so car is now left at the dealers until we can get replacement V5.

Question is what do I do? He has clearly misled us. But if I demand my money back now I will lose money on the insurance. Have done HPI checks etc and car isn't stolen, subject to finance etc.

I am so upset. This is quite a lot of money for us and I have no trust in this company now.

If you took out the insurance policy less than 14 days ago you are still within the cooling off period and can cancel it.

I would do this and tell him you don't want the car and you want your money back.

You can get a replacement for £25, I just have because I'd lost mine. I quick phone call is all it needs from him.

Obviously it will come to light if he's not the registered owner when he squirms and can't do it, but that's your answer.

Cancel the sale, sounds pretty dodgy at worst, disorganised at best. Either way not someone I'd want a car from.

And as a dealer he hasn't yet applied for replacements