RIP-OFF Car Dealer!

[Lance]

This thread is a warning to potential car buyers and to ask assistance from any of you who do or may have worked in the car sales business.

In the spring of 2009, my wife wanted to trade in her '06 Mitsubishi Eclipse for a new car. She really liked the new Nissan Murano, so we went to the Nissan dealership (where my wife's nephew worked) to have a look. On the lot were both 09 and 2010 Muranos. Several of the 09's were American and had low or no mileage on them. The difference in price on these from the Canadian 09's and 10's was considerable so I called the salesman over to question him.

Me: "What's the deal on these American cars?"
Him: "Those were bought at an auction in Spokane. A dealer went under receivership."
Me: "I'm a little leery of buying a used car from the States; how do I know everything is fine with this car?"
Him: "Well, these cars were inspected and are all in top shape and carry a full warranty."
Me: "What about prior damage?"
Him: "None."
Me: "My wife really likes the burgundy one, can we take it for a test drive?"
(She test drove the car and loved it)
Me: "One of your mechanics is our nephew; do you mind if he has a quick look at it for us?"
Him: "Sure, no problem."

We then did the usual haggling over purchase price and trade-in amount on the Eclipse and finally made the deal.

(Fast forward to summer 2012 ) One day I notice the clearcoat and paint peeling off the hood. One can clearly see bondo where the paint has peeled off. WTF! We contact the dealership and they tell us to bring it in.
Him: "This car was clearly in an accident."
Me: "I see that. Why weren't we told this when we bought the car?
Him: "I guess we didn't know."
Me: "Well whatever. I want you to make this right, the car is still under warranty."
Him: "Unfortunately, warranty does not cover damage from an accident."
Me: "As I understand it any car that has had damage to it must be reported to any potential buyer."
Him: "Only if we have knowledge of the damage, and we obviously did not."

After a futile and heated argument, I told them I'd sue and left.

I took the car to an autobody man I know and had him look at it. After removing some of the body parts he found bondo in the hood, front fender, bumper and back bumper. It looks like this car was hit in the front hard enough to be pushed into something in the rear. I had him take pictures of all of this for me. Then I paid the $50 for the Car Fax, which does not have any record of any damage to this vehicle. I then went on-line and found this from ICBC: "All dealers in B.C. are required to know and disclose the history of the vehicles they sell. In addition, the dealer is required by law to disclose anything that would be material to your decision to purchase the vehicle. This could include, but is not limited to, such things as:
. whether the vehicle was declared as salvage and rebuilt
. was stolen and recoverd,
. sustained damage under $2,000
. the actual amount of any damage over $2000.

I am now in the process of writing Nissan Canada with my case. Do any of you who may be in the trade have anything to add, and do I have any chance of winning? And if so, am I right in demanding a new hood, fender and bumpers? Thankx for any info you can give me.