Motor Blew up after 15 days

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Friends of mine purchased a car from a Used Car Dealer, they bought the car "as is".
They took the car off the lot to drive it home and the car broke down. They phoned the dealer, he came and got the car, canceled that sale, then sold them another car...They put 300.00 down
and were supposted to make payments of 200.00 per month till the car was paid off. 15 days later the head gasket and engine on that car blew up.
The dealer had the car towed to his lot, told my friends they bought the car "as is", cancelled their payment program, kept the car and their 300.00. He refuses to refund any portion of that money.

My friends were willing to let him keep 100.00, because they did drive the car for 15 days
but they wanted 200.00 returned to them, the dealer told them "too bad".

Any advice for them? Im giving them forms to the Better Business Bureau and Attorney General to file a complaint.

Does anyone think their money should be returned or not?

it sounds like the 200 extra is a bit excessive but other than the bbb, and conumer affairs, chalk it up to a life lesson.