Advice please: Car bought 3 mths ago has developed expensive problem - what to do now

Morning all, I'd like the benefit of some advice please.

In November I bought a second hand car from a dealer - a 54 plate. When it broke down on the drive home from the delaership (they hadn't put any fuel in it) I should have realised it would be a problem. Anyway, it has been shuddering whilst accellerating/ braking so yesterday I took it to a garage to have it looked at. The diagnosis is a failure of the gearbox diff bearings (or something similar) and consequentially it needs a new gearbox and possibly a clutch. At a cost of about £1500.

Now, I'm not pleased. I paid a large deposit, and have the rest on finance. Total price of the car was £3500, so I'm not willing to pay an extra £1500 to get it fixed. What advice can you good people give me on what I can do now? Do I have any rights on returning it to the Dealer under Sale of Goods as not fit for purpose after this time? I do have a warranty - but they will only pay £150 towards the cost of labour.

Any advice very much appreciated, thankyou very much,

KP

Re: Advice please: Car bought 3 mths ago has developed expensive problem - what to do

Thankyou for your response and advice - very much appreciated.

Sadly I've no full details of the warranty - but I'm trying to get them, and will revert once I've found these.

Taking your advice I've written a letter to the Finance company explaining the situation, and requesting they look at knocking the price off the outstanding balance.

I've used the "fit for purpose" wording in the letter also - a car that is undriveable after 3 months strikes me as not "fit for purpose". I'm hoping they will take it up with the dealer, and I'll get something in response.