Take it back and ask for the faults to be fixed. Polite but firm.
What reason did he give for not allowing you to test drive? Insurance?
I wonder if the car was for sale on behalf of the owner with the dealer keeping a chunk. If there was no warranty, this could explain it.
In any case, a basic 3 month warranty won't cover any non mechanical faults which yours are.
If the dealer refuses to fix the faults, you realistically have just two options as the Sale of Goods Act won't be of much use for a car of this mileage/age:
Either pay to bring the car up to satisfactory condition and run it into the ground, chalking it up to experience, or cut your losses and put it through an auction where you may clear it's true value of around £500.
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