downpayment refundable?

NY-nassua county. I recently agreed to buy a hybrid. At the time of sale i asked the dealer what would happen to my downpayment if i didnt like the car when i came to pick it up 2 days later. he told me that if i didnt like it, i just dont sign the papers and the downpayment would be returned to me. the following day (day before i was supposed to pick up the car) i went in and told them that i no longer wanted the hybrid (that wasnt the inital car i wanted anyway), the dealer and the manager said that was fine, so we started talking about the regular sedan. The best price was offered for the sedan but i didnt agree to it since it was still very high, i asked them for my inital downpayment for the hybrid back and the manager REFUSED. He then gave me two options, 1. to buy the hybrid or 2. buy the regular sedan at the last price they gave me. Is this even legal, what he's doing?
with that being said, what can/do i do now? ive already contacted my back to put a stop on the payment but since it was "pending" they said they couldnt do anything about it unless the dealership "refunded" it to me themselves.
please help. thank you!