I went to visit a second-hand car dealer to look at a Volvo V50. On the advert it said 1 owner and 47k. When I went to the dealer I looked over the car and took it for a spin, all was fine and correct.

I checked the service history and all was fine too. The dealer gave some trousers about how he had another person interested and I should put a deposit down if I wanted the car. That evening I did an HPI check and found it showed as having outstanding finance and 2 owners. I contacted the dealer the next morning and he said that the outstanding finance marker will be removed as its a mistake. (I confirmed this with the finance company.

Apparently a man went through with all the finance then decided he didn't want the car.) However the salesman was adamant that it had only 1 owner. I called HPI and they confirmed it has had 2 registered keepers not one. So I emailed the dealer asking for a refund as he had mis-described the car. He didn't respond. I called him after 48 hours and he said he would not refund me my money as I had cancelled the contract. I told him he had already broken the contract as he mis described the car.

And he then told me he'd pursue me for £150 for loss of earnings since he took the car off sale. Can someone please confirm I am correct with my rights? I have the evidence of the advert showing 1 owner, and I have the HPI report showing it has had 2. In addition to this the seller has now changed the advert to show 2 owners.

So surely this shows that he knows he was wrong?