What Can I Do About My Used Car Purchase? Location: California

I bought a used car that I love. It had some random things that needed to be fixed so I took it to the dealership to get serviced. They called me and told me that they found a problem that they hadn’t found before that would cost $4000 to fix. They told me that the car shouldn’t have been sold to begin with because it had been hit from the back. They are offering to find a replacement vehicle in their inventory but they don’t have any used cars that are comparable that I want. I asked what would happen if I didn’t like any of the other options, the only other option offered was basically to return the car. What can I expect them to do to make it right? I signed a form agreeing to arbitration when I purchased the car. I want a car like the one I purchased. Is there a possibility that they would even give me a new model that’s the same as the used one? I’m disappointed to say the least and am really hoping for a good outcome. ETA: I paid 23,000 and a new one starts at 33,000. Location: California
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