Thank you for your reply.
Also, I have done a check through an online website on this vehicle and there is a mileage discrepancy which is 50,000 miles difference. MOT and service history show the mileage as per the dealers advertisement of 42,000 miles compared to 92,000 on the online check. Mycarcheck where I checked mileage say it was either a garage or DVLA where the info had come from. I contacted DVLA who said they don't confirm mileages, they told me to contact VOSA who said the same thing !!!
Dealer checked on a computer and it points to the DVLA where the mielage discrepancy came from. Dealer says it has to be a DVLA typing error or that info went to them from the logbook !
I did another check through autocheck and they show mileage as 92,000 in June 2011 and 42,000 in July 2011 !!! In addition, it also says "There is an existing finance agreement or loan recorded against this vehicle" which naturally does not sound good. The agreement type is shown as "Unit Stocking" and the Finance Comapny as "Volkswagen Financial Services".
I assume however, this isn't confirming whether that loan has been repaid or not. In addition, am I correct to say that if someone has a loan against the vehicle it generally goes up for auction if it isn't repaid?
Although I no longer wish to buy the car due to these discrepancies, the dealer maintains that all is well with the car and says he has done a HPI check. Well if he had i'm sure this would have come to light.