MB Luxor Auto Deceptive sales tactics and false advertisement San Diego California

The dealer misrepresented a car I was trying to buy. They provided me with false information by sending me photos which showed that the vehicle was in a rear-end collision. I made a deposit of $500 to keep the car and hired an inspector to come out for $139. I emailed MB Luxor to tell them right after I booked, that an inspector will be coming out to see the vehicle. After further research, photos from the auction were found and the real damages were depicted as a front-end collision. This changed my desire to purchase the vehicle and I called the inspection company to stop the process and get a refund. Their policy is that there are no refunds after 3 hours of purchasing an inspection. I emailed MB Luxor Auto and they admitted to sending me the wring photos. They told me they would only refund the $500 and not the inspection fee (even though I provided them the invoice and confirmation). Since MB Luxor Auto was the one who completely lied about the pre-repair condition of the vehicle, I find them responsible for the inspection which I spent money on. They refuse to pay for the inspection and are stating that I am trying to extort them. It is very simple: they falsely advertised (not sure if it was an honest mistake or a fraud attempt), they admitted when they were caught (I have it in writing), but they wont own up to their full responsibility and pay for the inspection which became unnecessary once truth was discovered.