Auto purchase/return options

[breeze320]

My friend co-signed for an auto loan for me. Loan came via check from e-loan. Check was for a minimum of 7500 to maximum of 25000. Found car, bought car by handing over check in negotiated amount to dealership. 30 days went by, no word from e-loan as far as payment booklet. Dealership calls my friend to notify her that dealership lost check. Friend calls e-loan to have another check disbursed. Receive check and give to dealership. 8 months go by without word from anybody. In that time frame, we have logged communication via email to dealership and e-loan. E-loan doesn't recognize us as owing them any money, doesn't know what we are talking about. Dealership finally calls last week to notify us that there has been some sort of mistake and that they are trying to locate another lender and advised us that payment in the amount of $512.00 would be expected on or around the 1st of Oct.'01. Original contract signed by my friend was with e-loan as lender and the payments were to be $490.00. Dealership wants my friend to sign new contract.
My question: when purchased in Jan,01, car was a 1997 model with 11,000 miles. Now it has 33,000 miles. I do not wish to keep the vehicle for the same price. Do I have options? Can I just return the vehicle based on error on their part? Can I have them re-finance the car at lower rate and lower price according to market value. I could have payed around $4,400.00 towards my loan and have some equity building , but now the car has 33,000 miles on it , with no payment made towards the principle loan as of yet.
Help !