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recalling car finance (zuto paid out before we viewed the car)

Hi all, this is quite long winded and confusing.

we've used zuto for our last 2 cars with no issues. 

last week we found a car, paid a refundable (?) £100 holding deposit and put the finance in place ready to pick up the car, were told that if we weren't happy with the car it was fine.
We were the ones chasing the dealers to view and were told we could collect on thursday if we wanted but there was an issue with the door handle, they'd ordered one but it was up to us whether we took it or waited for it to be repaired.
We decided to go and have a look at it, have a test drive, see what the issue was and make a decision from there.

when we arrived the drivers door handle was completely missing, in fact it was in the glove box, we decided there and then not to take the car that day, dealer said they'd have it ready for the weekend so we asked if we could have a test drive.

i was only allowed to go left in a square so small i couldnt get higher than 3rd gear and the brakes were scrapey, the guy in the car said it was some kind of acid on the brakes (?) and that after a couple of miles they'd be fine.

At this point we've alarm bells ringing like mad, but said nothing and left.
we rang zuto and explained our issues, they said we'd done exactly the right thing and not accepted the car, we said we'd have a chat and come back to them with a decision in the morning.
A quick google shows this garage is not a reputable dealer and has in fact been on the sherriffs are coming TWICE. As you can imagine this became a definite no to taking the car at all.

Slight problem, unbeknown to us..... Zuto have paid the money to the dealers before we'd even got there! the last 2 cars they've sorted we've had to wait for a funds transfer before we've been allowed to take the cars!
I'm now carless and we can't make any further finance applications until this is resolved.

i suppose all i'm looking for is anyone who's had experience of this and can reassure me it's all going to be ok.

TIA



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