Thanks for your reply GWC. What concerned me was that the dealer told me that the V5 had been sent to the DVLA because of a plate change, not because it had been bought without a V5. This sounded plausible and so I was happy to believe it. However a call to the DVLA and an independent history check of the car both showed that the car has only ever been registered on one set of plates, and the DVLA also told me that the application they had most recently received was for notification of a change of address and this new V5 was sent out 2 weeks ago.

Thanks both of you. Any idea where numerous websites are getting information to the contrary, in relation to an October 2002 piece of legislation. e.g http://www.whatcar.com/news-special-report.aspx?NA=220093 Things to Consider When Selling a Car - Part 3 etc....

Firstly please resist the temptation to shout "you idiot!" as you read this. I have read that since 2002 it is illegal to sell or buy a car without a V5. Last week a dealer sold me a car that had no V5 saying that he would send it on to me the following week when it came back from the DVLA. He had the service history book, MOT, and key but the car has no tax and obviously cannot be taxed without the V5. I realised too late how stupid I was and have since tried to cancel the deal but the dealer will not accept this, even thought it seems this deal is actually illegal. I part exchanged my car and paid the balance on my credit card. He has my V5 and books although I have held on to my car and have told him I won't exchange it until the other V5 that he promised for the car I bought actually arrives. I feel completely gullible but put faith in the protection that I thought buying from a dealer offers. It could be weeks before the V5 arrives if it ever does. Is there anything I can do legally to cancel this deal? Is the dealer legally allowed to offer for sale a car for which he doesn't have the V5?