1st. I would take the money, unless you love this car and plan to keep it until death. Cause it will be a bitch to sell "honestly".
2nd. While i have never bought a car from this dealer, i do know them and find them to be strait up. Kudos to them for the refund offer.
3rd. I am a firm believer in a "knowledgeable" inspection before purchase.
Often times these dealers need inventory and will buy cars at auction without thorough (beyond cosmetic) inspection.
Colin is a prime example of a savy dealer. (eeww, i here Colin's head swelling from here
) He knows that fakes are out there and will kill your hard earned rep.
Good luck with car.
John