I bought an R-reg Peugeot 106 12 days ago. Yesterday I took it to a garage as the oil was incredibly low, he filled it up for me - and noticed I had an oil leak and that there was oil in the water resevoir. He said this is likely due to a shot head gasket.

I took it back to the garage that sold it to me, asking for a refund, as it is not fit for purpose nor is it of satisfactory quality in accordance with the Sales of Goods Act 1979. There is also something worng with the engine, according to the oil change garage, as it revs itsself and kangaroos as I try to pull away (not always, but frequently).

I would like to know if problems like these with the head gasket are due to 'reasonable wear and tear', if so, I will not be able to claim. What do you reckon is the best way forward?