 Advice needed - trader refusing to return money
In March 2007 we agreed to buy a Toyota Townace from someone we considered to be friend - who deals in exporting and repairing vehicles. The total cost was £1200. He told us it needed some work doing on it which would take a few weeks - we gave him £560 -stupidly without asking for a receipt as he was a friend, and partly because in taking it from us he was doing us a favour in stopping us spending it on something else.
By July after many promises from him, the vehicle was still not ready but knowing he was busy and not wanting to fall out we borrowed a neighbours car to tow our caravan. By December - many promises later, and by this time he had told us several times that it was ready, taxed tested and towbar and he was 'bringing it to you tonight' - we paid a visit to his garage - it is some miles from our house so not somewhere we could go everyday. we saw the vehicle in his yard - wrecked, storing bits of old cars, ready to be weighed in. When confronted he admitted it had never been roadworthy but that he had a Toyota Lucida lined up for us which we could have in a few days. Needless to say - same old promises two or three times every week until May this year when we'd finally had enough. He promised us (again) if he didn't have the vehicle for us in three days he would bring our money back - and here we are still waiting. We've bought another vehicle elsewhere. This so-called friend is still trading, still promising, almost everyday, that he has the money - until we say we will call to collect it !
My husband is reluctant to fall out - I am all for exerting a bit of pressure now but I'm not sure where I stand without a reciept as proof of giving him the money - although a neighbour was there when we gave it to him. I have completed and saved a moneyclaim online form. I am thinking of sending him a letter before action but I'm wondering if this the right way to go about it. Obviously reason and tolerance haven't worked. I'm happy to name and shame him but not just yet | 
