Sounds like the car was misrepresented by the mechanic doing the PPI.
I'd do everything I could to get the car returned back to the original owner.
How much did you pay for it? (rhetorical question) Is it worth engaging a lawyer?
I really can't understand why people think it's OK to do stuff like this.
But...
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Not as uncommon as you might think here. I won't buy a car without looking at it firsthand anymore.
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Same here. The last car I bought "remotely" was from Malaysia. It looked great in the photos but when it arrived

. Never again.