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Rejecting a used car

Last Saturday I collect my used Honda S2000 2004 with 112k on the clock. The car was described as fully serviced with a recent service but with a few minor age related scuffs and scratches etc.
The dealer had told me on the previous visit that the car had been maintained to the highest standard with a stack of Honda receipts etc and fully stamped service book. He also confirmed he had just put it through an MOT and replaced the front pads.
On the first visit the dealer took me out for a short test ride with the roof down - approx 2-3 miles.
On the day of collection he allowed me to test drive the car - but only for 1mile.
During these short drive I did not hear any untoward noises.
However, once I drove the car away, after 5-10 mins of local traffic I noticed a whirring noise which increased in frequency in line with the speed. I stopped the car after a while and called the dealer, who assured me the noises were normal. However, once I got on a motorway the noise changed to a high pitched whine - louder than the engine noise.
When I got home I emailed the dealer reporting the problem.
After much investigation I have been advised by a gearbox expert that the gearbox bearings need to be replaced.
However, the dealer is adamant he is not liable and I cannot reject the car because it is 11yrs old and 112k so this would come under normal wear and tear and also because he advertised it as 'Cheap PX to Clear'. He is only offering a limited goodwill gesture towards the repair.
Do I have a legal right to reject the car / demand full repair costs or is the dealer right and it would be considered normal wear?

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Yes, because he is a dealer and because he did not advertise it as having worn gearbox bearings, you can reject the car for a full cash refund. Since you paid less than £10k, if the dealer cuts up rough, you can take the case to the small claims track of the county court. Do NOT drive the car in the meantime. And definitely do NOT get it repaired then try to recover the costs from the dealer. Alternatively, get a quote from a gearbox specialist for a rebuild, see how far the dealer's goodwill contribution will go towards it, and make a decision whether or not to repair it and keep the car. If you've already taxed and insured it you'll have to take those unrecoverable costs into account. Law here:
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