I suspect the sellers boss has given him a bollocking for putting the company name in a bad light and he's now afraid of any more bad publicity hence the solicitors letter.
I'd check this wee law. Apparently anyone working in car sales trade needs to legally give a warranty. Whether it is in the dealer or their own private car sale at home. Was chatting of it a while back in our place. Non of our sales guys would mention they work in sales for this very reason if they where selling their own cars privately.
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