Whilst technically they should, as a conscientious dealer, check the car (preferably before the sale), I would've thought it would be good for you to tell them about any items that may incur reasonable costs to put right, especially in the light of the price offered.
Think about it - how would you feel if the person PXing the car you're buying had done the same, and you find yourself with a big repair job, possibly just after the mandatory second-hand warranty runs out? You might end up with £250 - £500 less, but at least your conscious is clear. I did this with my PX on my previous car and took a £200 hit (£650 to £450) - I didn't mind as, I had got a blindly good deal on my new car (£1k less than anywhere else and £3k+ less than the list price).
I suspect others may disagree with my opinion, but hey-ho.
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