Misrepresented service history

I bought a two year old Jeep Grand Cherokee from a Jeep dealer. It was advertised as having a full service history but after I received the documentation I found it had not had its first service and the second service was two months late. The dealer has now informed me that Jeep will not uphold the remaining warranty.
The dealer has offered £500 as compensation but on a purchase price of £27995 I feel that this is not sufficient, any major repairs would cost a lot more than £500 also the purchase price should have been less for a car without service history.
Should I consider legal action to recover any of my losses or should I ask for a refund of the purchase price?

Asked on 17 December 2015 by Diesel Dan

Answered by Honest John
That is grounds to either reject the car outright because it was misrepresented, to insist that the dealer provides an all-inclusive insured warranty for the final year with any problem not covered by the warranty covered by by him, or to pay you £3000 for the diminution in value as a result of the failure to service the car properly. Law here: www.honestjohn.co.uk/faq/consumer-rights/ If the dealer takes the 2nd option, get everything in writing.
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