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First, regarding your friend who has been selling cars for 25 years, he needs to understand that under PA law, parties are allowed to contract
as they see fit to contract. The courts state that people are allowed to negotiate the "benefit of the bargain" they are seeking. What this means is some people negotiate the good benefit of the bargain and some end up with possibly a bad benefit of the bargain. Thus, if people contract for a price because one party was not aware of what prices were and did not do research before buying, then that is a choice made.
If the seller provided the sticker on the car, known as the Moroney sticker, which has the MSRP on the car they have satisfied their legal obligation. If the dealer did not have the Moroney sticker on the vehicle, then you could potentially have a claim for unfair and deceptive business practices.
Once you return the vehicle, it depends on the bank which papers they have you sign, but most banks just take the vehicle back. The bank is not liable to you for you borrowing more than the vehicle was worth I am afraid.
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