Dealership sold me a Lie

I purchased a 2005 dodge neon from a dealership in april. When i went over some bumps it would make a strange sound like something was hitting inside the wheel well. But it only happened when i went over a bump. Last month it started to happen every time i turned the wheel. So i took it to my local dodge dealer to have it checked out since it was supposed to still be under its factory warranty. when i took it in i talked with the repair guy about making sure that if it cost anything not to do the work cause i was broke and to only fix what was covered with the warranty. He told me that the only reason we could not fix the problem would be if the car had been in a accident. We both laughed cause the car looks perfect not even a scratch on it. It took the dodge dealership service shop 3 days to get back to me and they told me that the car had been in a accident and that: (quoting from invoice) "Customer states that the CV joints makes a clicking noise on the drivers side front. Found that vehicle was in an accident. Left front control arm, left rear strut will need replaced and engine cradle will need to be adjusted or replaced. Front wheels are off set." I just about freaked out when they told me this, they asked where i purchased the car and i told them from a Toyta car lot in Seattle. They advised me to contact them and see if they would at least fix the problem since they did not mention this when the vehicle was sold for 13000.00 So i went back to work and called the toyota dealer and explained what the dodge dealer found out. About 2 minutes into the conversation i was transferred to the manager who immediately told me that they checked the car out when it came in and found no problems with it and that they are not going to do anything. I asked about the supposed warranty that i was offered and that they spent 3 months on finalizing to get it all transferred into my name and he said that he did not know what i was talking about. I asked him what i should do and he told me to take it to a different dodge dealer and get a different opinion. I have been using this same dodge dealer for my Jobs vehicles for almost 2 years and have no doubt that they are a legit company. Is there anything i can do to get out of this contract with this dealership or get a new car or something i really do not want to pay 13000.00 for a car that has been in a accident that is only valued at 11000.00 brand new. I dont know what else to do i think the dealership has taken advantage of my wife and i and need some help.

It seems to us you may haul them into small claims or other court and force them to explain under oath what really happened to the car. The warranty should apply we agree and they need to pay. You could tell them that that is what you will do if this is not resolved.