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The seller has to give you a full refund and take the car back.
This was a material mis-representation to the point it sounds like fraud.
Tell the seller if he/she does not give you a full refund you will commence legal proceedings and then will be seeking damages for inconvenience, for out of pocket expenses such as the rental, interest and your costs.
You can sue the seller in Small Claims Court and can self-represent and if it gets that far and you find you need some help as you go through the process you can always post on this site again and I can assist you further.
Well keep that information handy and when you are in court you can raise it when questioning him.
I am so sorry this happened to you.