Used iMac won't start up past the flashing folder or spinning loading wheel

Hey guys, I just bought a used iMac 24" with mountain lion of eBay. (first mistake) its the late 2008 model.
got it home started fine. started moving files across and it froze, couldn't force quite or anything so I turned it off at the back.
Tried turning it back on and I got the folder with a question mark flashing at me..
tried safe booting and I just get white screen with a movable mouse pointer..
tried force restarting using option>Command>R>P. and get either the folder flashing ? or the apple symbol with the spinning loading symbol under it not going away.
I've left it over night and it often turns on for about 5 mins in the morning and then freezes.. and the cycle repeats..
I do not have the install disks as it was used.. and I'm really stuck.
Anyone got any good ideas?
Thanks

If you boot holding the alt/option key, that should give you a choice of source to boot from. Assuming that works, go into System Preferences and set your boot source so it will proceed normally after that.
If that doesn't work, either buy Snow Leopard (in US call the Apple online store at 800-MY-APPLE to order) or take it to your local Apple Store to have them boot to a Snow Leopard disk and run a disk repair and permission repair on your hard drive.

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