Please help, is this car dealer a rip off?

[Turbotime]

Ok, I had this car i was ready to buy, so i ordered a carfax report, the engine runs, but there is something wrong with it, like an injection problem. So i talk to the guy abit, and told him i need some time to think about it. So he said thats fine, I decide to order a carchex report two weeks later, he says fine. Carchex calls me two days after ordering, saying they need a gas fee...i say fine, and they call me a day later again. Saying they need MORE gas fee! CHEAP MUTHERFUCKERS! Again, I say fine. So they FINALLY get the report after 6 days of waiting. They check everything, and basically say they dont know rotary engines, and they dont take it to a test drive either, there wasnt gas in the car (CHEAP BASTARDS) and they say there is an engine problem with the car. Rx7 rebuilds are expensive. So i call the guy, and say i cant get the car cuz he could not find out the problem. HE CHARGES ME A THOUSAND DOLLARS cancellation fee! Bullshit! He just takes 1000 off of my money order and sends me back my other 7000....cuz he said there is a storage fee, and other people wanted to buy it, so it just sat there. Thats fucked. He didnt even say anything about cancellation fees or anything liek that at the start, can he just take my money without written documentations or signatures?
Please help

[Deadhead]

Wow.... that really sucks. I would take him to Court for that.

[Turbotime]

Yah tell me about it, Is that allowed.
I figure it shouldnt' be, since he agreed to all of these carchecks, and couldn't provide information on what was wrong with the car, and he actually expected me to buy it, and tries to shave a grand off of my money, without any documentation on cancellation fees or anything.