Dealer In Il Sold Me A Used Suv With An Autocheck Showing No Accidents. Insurance Later Found A Police-reported Accident With Airbag Deployment And Won’t Insure It. Dealer Is Now Calling The History “questionable” And Refusing To Unwind The Sale. What Should I Do?

LOCATION: Illinois

I’m looking for advice on how to handle this situation and whether I have grounds to unwind a used car purchase.

This past Saturday (Feb 7, 2026), I purchased a used 2023 Hyundai Santa Fe from a dealership about 82 miles from my home. At the time of sale, the dealership provided an AutoCheck report showing no accidents or damage reported. I relied on that report when completing the purchase.

After driving the vehicle home, I attempted to bind insurance. Multiple insurers informed me they could not issue coverage because the vehicle has a previously reported accident. A different vehicle history source that I had to purchase shows an accident in 2024 with front/left impact and airbag deployment, and there is a police report tied to it.

Because of this, I am unable to obtain insurance, which is required under my Retail Installment Sales Contract (simple interest contract, lender is Foresight Bank). The contract states failure to maintain insurance constitutes a default.

I contacted the dealership this morning to request an unwind of the transaction (return vehicle, cancel financing, refund funds paid). The salesperson responded that:

• the accident history is “questionable”
• inability to get insurance is “not grounds” for a return
• the vehicle is registered in my name, so I am “the owner”

They are currently refusing to unwind the deal.

Additional context:

• I am an insured driver under another vehicle’s policy but could not add this vehicle due to the accident
• I have not driven the vehicle since learning it’s uninsurable
• The car was sold as-is, but the issue is undisclosed accident history, not mechanical condition
• I have a newborn and a toddler, so safety is a concern
• I notified the dealer immediately once I learned of the accident history

I’m trying to understand:

• Do I have grounds for an unwind due to material misrepresentation / inability to insure?
• Should I contact the financial bank/lender directly?
• Should I escalate to the dealer principal, state AG, DMV, or file a formal complaint?
• Has anyone successfully handled a similar situation?

Please refrain from telling me what I should have done, I'm already beating myself up for missing some steps such as getting a mechanic to look at it at the dealership or running the VIN through a NMVTIS website prior to signing. I have all documents and screenshots as well.

Thanks in advance for sharing any advice on my next steps.