Hello all - help!!! No idea where I stand with this.

About 2 weeks ago I purchased a used car from an independent trader.

Gave him v5, old MOTs, HPI (from when i bought the car), service book, all other paperwork etc, paid the £3500 difference in value and drove my new car home. All very happy.

Just had a call from the dealer claiming the car I gave as PX was clocked and had had 30k mileage taken off it in 2011. I only bought it 4 months ago. I have asked for the proof of the clocking in writing.

Dealer is demanding I return my new car to him, then take my old car back and get a refund from the garage that sold it to me. I have insisted I sold the car to him in good faith.

The last email I sent him said this:

The mileage was as per the odometer. I clearly had no idea that there might seemingly be anomalies.
Again, the service history I stated was exactly as per the service book.
Both of these items were as I received them from XXXXXXX a few months earlier.
You had physical copies of all of this information and more when I paid for the XXXXX, and I assume you have a process of due diligence before accepting a car in part exchange.
Please contact XXXXX, the dvla, national mileage register or police if you wish to investigate this further. The mot history you sent me gives dates as to when the mileage anomaly might have occurred, and therefore you could find out who the owner was at this time.
I am truly sorry if this leaves you in a difficult situation, but the deal was done, I paid you for the XXXXX, and in doing so, you accepted the XXXXX with no implied warranties or guarantees.

The dealer then replied with this:

Without prejudice I don’t think you understand, the service history is counterfeit which means that by passing it as an official record you have committed a criminal (not civil) offence, also you told me in writing that it was full XXXXX history and it's just a set of counterfeit XXXXX stamps.

It makes no legal difference if you’re a private individual or a business, passing counterfeit documents in relation to a financial transaction is serious criminal stuff, if you had not passed the service book as proof of history it would be a totally different matter.

Basically we can play this a number of ways but you will end up better off by a significant margin if you just return the car to the people you bought it off.

If you don’t choose to do the correct and let us not forget honourable thing and take the XXXXX back then I will have no option but to take you to court for passing fake documents in relation to a financial transaction. If you are found guilty then you have a criminal record, costs and the real possibility of imprisonment as it falls under the counterfeit and forgeries act which is serious law - this isn't a TV show and I'm not just going to go away.

I just don’t understand why you would want to go through all that given the possible consequences for you, on my side all I have to think about is maybe a few thousand in legal costs which I'm insured for anyway, besides I have been through this before and the courts have found in my favour every time when fake documents are involved.

Anyway I will let you sleep on it for tonight as I don’t think you have fully absorbed the gravity of what's involved here, or that I'm not just going to accept it as 'nothing to do with you'.

At this moment in time I have no hard feelings over this, there is an easy solution for you and I'm happy to work with you to help you through it; really there is no reason to make this one of those things you end up regretting and the way out is easy.

Please help!