I had a similar problem with a mk1 scirocco I bought from a dealer in Croydon, a month after I got it I was stopped and arrested at Gatwick for driving a stolen car! Turned out the dealer had previously sold the car on HP to someone who had defaulted on the loan so the car was taken back by baillifs and the dealer had to take it back as per his contract with the HP company. Meanwhile the previous owner went into Milton Keynes police station and claimed the car had been stolen so he could claim on his insurance.
Way back then in the late '80s dealers didn't have to register cars in their name so while it was being repaired (would appear the defaulting owner had rolled it due to verious bits that I discovered later in my ownership) and sitting on the dealers forecourt it was below the DVLA radar.
I was obviously cleared of any wrong doing about 3 hours after being arrested, the police were ever so nice, while waiting to speak to the dealer they put me in a cell, left the door open, offered me food and drink, rang my boss and said "we don't think he has done anything wrong but we've had to arrest him...."
3 months later I was sitting outside a scrap yard in the scirocco while a mate was having his screen replaced on his marina when a police car came upto the scrap yard, we heard him do a PNC check on the reg as it bleed through on to my FM radio, he must have reconised the description as it was reported stolen locally, he looked very disappointed when he got the reply.
I then got a call from Thames Valley police asking me to confirm the story and then 6 months after getting the car I got the V5 and the HP purchaser got done for fraud.
Anyway, enough of my scirocco.
Did you report the "theft" of your car to the police as soon as the deceiption was discovered, did you still have the car insured at the point of deception (i.e. when the thief took the car), have you contacted the insurance company, have you contacted eBay, have you contacted the baliffs, have you contacted DVLA.
At the end of the day all these organisations as party to your loss and all should be working towards you getting your money.
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Former custodian of the legend that was FE54 - RIP
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