Every State is different, but the basic law is very basic on this type of issue.

A dealer has different requirements than an individual. Think of it like this: I have a car I want to sell. I've never sold a car before in my life. (This is actually true.) So, somebody calls me and has an offer. They can come up with half of the cash price, but they have a pickup they want to trade for the other half. They assure me the pickup is worth more than the cash they would owe. I accept, take their cash and their truck and leave the for sale sign in the truck and park it by the road for sale. Next day I sell the truck. Great I figure I am done. Well the truck has issues and the buyer wants to come back to me.

I can clearly claim ignorance and that I am not a dealer. I can't be held responsible as I would not have any way to know there were issues with the vehicle. I can at least make the argument that I would not have the expertise to know something was wrong with the vehicle. It may or may not stand up in court, but I can at least make a good argument.

Now this is what a dealer does every day. Day in and day out, cars come and go. They know what the cars are worth, they know specific cars have specific known issues. They are in the business of knowing this information. In fact, this is what they tell people is the best reason to deal with them over an individual, they know cars.

A dealer also has another major issue. As a dealer there is the warranty of merchantability in play as well. https://consumer.findlaw.com/consumer-transactions/what-is-the-warranty-of-merchantability.html

You may not be able to use this, but if they mislabeled the vehicle they may very well have failed to live up to it.

At the very least you need to contact a lawyer. Talk to them first, before you take it up with the dealer. The first thing is to decide what you actually want. Do you want to return the car or just get some of the cost of the vehicle back?