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The fact that he cannot be given the car he drove is grounds for him to simply terminate the contract, since he agreed on the car he drove and not some other car. Second, he agreed on a specific price and now they are changing the deal (it is yo-yo financing and that is something you can report them to the CA Attorney General for as well). He needs to TEAR UP THE CONTRACT and walk away as they are in breach of the contract and he has these two grounds to void the contract and should use them. If they do not give his money back he can sue for breach of contract.
I am afraid that because it is a breach of contract, it is not generally something the court can legally award unless you prove that this is an unfair and deceptive business act under CA Civil Code 17200-17210, then if he is a senior citizen he is entitled to seek up to $2500 in penalties per violation under the law. He would have to prove this was intentional conduct, and most likely from what you describe he could do so.
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