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Advice on possible legal action

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Hello there.

First of all, let's get out of the way the fact that I'm an idiot. Good.

Spotted a car on Autotrader and fell in love with it. Called the dealership with questions and was satisfied enough to put a £500 holding deposit down (via bank transfer) as I couldn't get over to see it for several days. When we eventually arrived at the dealership (a 110 mile round trip) the car was not there. We had to wait half an hour for an employee to turn up and when we told him which car we had put a deposit on and were intent on viewing/collecting that day, his face dropped and he stuttered and stammered. I suspected immediately that it had already been sold, either through poor communication or entirely on purpose.

He spun us a story about the car being in the garage but we couldn't go and see it because the garage was closed. On a Saturday. He said he would contact me on the Monday and would deliver it as a gesture of goodwill. Monday, nothing. Tuesday I called and he said, utterly unconvincingly, that it was still in the garage.

Nearly two weeks on and despite threatening police/court involvement, I still don't have my money back.

Is it a police matter, because it seems like blatant theft to me?

Or is it something I simply (ha!) take through the small claims court?

Any help is appreciated.

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