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I am an attorney with 30 years of experience; I hope to provide you information that will help you in resolving your question.
What a horrible experience you have had. Thank God no one was hurt.
Yes you have a case against the Dealership. When a vehicle has been in for minor service and comes out and the tire comes flying off for no reason that suggests that the dealership made a serious mistake handling the vehicle.
There is a concept in the law that is called "Res Ipsa Loquitor." It means "The thing Speaks For Itself." In plain English it means that when something is under a persons control (the car and the dealer) and something bad happens after that it can be assumed that the person who had control did something wrong.
Clearly the dealership knows that it made an error. It manifested that knowledge by agreeing to replace the car. For some reason they now think it is not profitable for them to do so. But that is not the point. The point is your vehicle is now severely damaged and you can not trust it as being safe to drive.
There are a number of things that you can do. One of them is to find an experienced Consumer Protection Attorney to help you with this. Most Consumer Protection Attorneys will meet with you to assess your case at little or no cost. Also they often are able to get their attorneys fees from the defendant when these matters are resolved. So there is no reason for you NOT to at least meet with one. This link can help you find one:
In alternatively or in addition to that you can file a complaint with the following organizations at no cost to you:
1) Better Business Bureau: http://www.bbb.org/new-jersey/
2) You can also file a complaint through the manufacturer that franchises the dealership. The Manufacturers have an arbitration program that is binding on the dealers but does not cost the consumer. Google the brand of your car and consumer arbitration
3) There may have been a defect that is under warranty, or there may be a warranty on the workmanship (implied or express). So you can also file a complaint with the FTC. The FTC enforces certain federal warranty laws:
4) Also contact the New Jersey Office of Consumer Protection:
Part of your goal is to make enough "noise" that the dealer will return to the table to make things right. So when you send your written complaint to these organizations also copy the owner of the dealership.
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Please note: Information is educational and not given as legal advice. Only your local attorney can give legal advice. I can't establish or accept an attorney-client relationship with you. All posts are available for public viewing.