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Help...I did it now!

Well, in short, I've done it now!

I bought the 1991 200TQ 20v w/ 76k miles, new tires, timing belt, pearl, body
very good (one small dent), inter perfect.  The dealer ("friends" of mine)
told me they checked everything out and that the car was ready to go.

1 hour after driving away (having signed all papers etc etc), the steering
became very tight, hard to control, unpredictable...AND...as we were rolling
back to the dealer to pick up the car I left there (my original vehicle), the
red brake light came on, followed within 3 mins by the brakes failing.  We
VERY nearly rolled into a busy intersection (coincidentally RIGHT in front of
the dealership).

I put the car back on their lot, gave them the keys, told them what happened
(all management and my salesman were gone), and left.

Yes, I made the cardinal blunder by trusting these people at the dealership.
This is a large and reputable (for now...?) dealer here in Denver and a
friend's Father is the salesman.  I know, I know.

I am now going to try and cancel the deal.  The vehicle was unsafe when they
sold it to me.  We could have been seriously injured.  I have signed all the
papers, however, these serious malfunctions occurred within 1 hour of leaving
their lot and they had the car back within 2 hours of my buying it.  By the
way, the salesman drove it off the lot (I was in passenger side) and filled
it with gas.  I drove it from the gas station.  Does that help my case since
I didn;t actually drive it off their lot?

Anyway...sorry this is so long...this has potential to be a huge nightmare.
 I would think that the dealership will take this car back rather than risk
their reputation.  I am prepared to do whatever it takes to NOT take this
car.  I paid $16k for the damn thing too!  I am losing sleep over this #%$@%$

Advice?  Thanks!  - Steve