The dealer refuses to replace/repair my faulty car - what should I do?

I bought a secondhand Volkswagen Golf for £5000 from a dealer. It developed serious power issue after two months. Dealer refuses to accept liability but offered to pay half the cost of repairs in his affiliated garage. I have rung him twice and sent two recorded delivery letters asking for repair, replace or refund. On phone he refuses, he doesn't reply to letters. Volkswagen diagnostics show poor compression and ignition on cylinder three and the power booster faulty, possibly a very pricey repair. What would you do? He does not belong to a mediation service. The car ombudsman says he is not part of their service. Do I go to small claims for £5000 or get it repaired at Volkswagen and claim back the cost?

Asked on 3 May 2017 by Chris Fagg

Answered by Honest John
All you can do is reject the car and take the matter to Small Claims: Remember that once you get a ruling in your favour you then have to pay a further £70 to get a High Court Sheriff's order to seize the debtor's assets to the value of your claim plus the Sheriff's chargers.
Similar questions
I'm a sole trader who recently sold an Audi A3. The buyer said they were having it remapped even though I told them it would void any warranty on the engine, clutch and gearbox. Subsequently, almost straight...
I have a Jeep Grand Cherokee that I purchased from a dealer and after seven days it overheated, causing damage to the engine. He's refusing to do anything under the warranty he provided with the car or...
I seem to have stumbled upon a whole world of hate this past week. I recently just passed my driving test and purchased my first car. The car in question was a Volvo C30 R Design. I don't know diddly about...
Related models
Plenty of second-hand choice, excellent cabin quality, efficient petrol and diesel engines.

Value my car