I am asuming that it was a private sale (non business) and if that is the case then you are in a difficult situation. I would try and bend Paypals arm up there back as they could be your only hope. The following is taken from the adviceguide.org.uk and explains your situation and rights quite clearly:
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Buying goods from a private seller
If you buy goods from a private individual, for example, through an advert in a newspaper or shop window, or at a car boot sale, you have very few legal rights. However, if the seller offers a description of the goods, they must match the description given. If your goods don't match the description given, you may be entitled to compensation. You may also be entitled to compensation if you have bought an unroadworthy car from a private seller, which has caused injury to someone. However, it may be especially difficult to get compensation from a private seller.
If you have been sold an unroadworthy car, you should complain to Consumer Direct – see under the heading Further help.
Sometimes, people who sell goods as part of their business pretend to be a private seller in order to avoid their legal responsibilities towards their customers. This is a criminal offence.If you suspect that the person you have bought goods from is not really a private seller, you should complain to Consumer Direct – see under the heading Further help.
Your local Citizens Advice Bureau can give you more advice about making a claim against a private seller. To search for details of your nearest CAB, including those that can give advice by e-mail, click on nearest CAB.
In England and Wales, you can get more information about your legal rights when you buy goods from a private individual from Private and car boot sales in Consumer Fact Sheets.
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If it's a business sale then you have lots of rights but a private sale is the opposite.
Chris.
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