If in doubt walk away.
Without the deposit ??
Well, the OP did say they hadn't signed anything yet. It would daft for anyone to hand over a deposit after being told what the OP has. If they did beforehand, then they should, in my (limited legal experience) view be able to claim it back as surely not being told would be against the law. I would suspect though that this would involve Trading Standards and or going to the small claims court, given the (IMO) lack of credibility and trustworthyness of the dealer.
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