If I were the buyer I would offer to set down with the owner of the dealership. He could have one opportunity to convince me that his dealership would never do anything that stupid again and one chance to offer me compensation. If he failed he could live with the consequences, if he did right by me I would offer to appear on the local TV news, shake his hand and call no hard feelings. For an instance of false arrest I would expect a letter of apology that clearly stated that the dealership was 100% at fault. I would expect not to make any payments on that vehicle.