I wouldn't buy a car that hasn't had a basic service in five years. If the car has no paperwork then I would assume the servicing hasn't been done. The lack of history suggests that the car has been neglected by its previous owner and is in a poor mechanical condition.

The 1.2 petrol engine uses a timing chain that is designed to last the life of the car. However, if the oil has not been changed regularly then the chain could be on its last legs. It also reads like the air con is faulty (it should kick in within a minute or two of the engine starting).

The dealer has probably pushed up the price because he/she has had a lot of interest in the car and is looking to make a fast profit. Given the lack of service history and the dodgy pricing, I would suggest that you find another car to buy.