Update Sorry, this is kinda long!
I took the car back to the dealer this morning. I went into the sales manager's office, handed him both keys and told him that I believed that the car had been partially flooded and that the car was unacceptable. I also told him that I would not keep the car and expected a loner until a replacement could be found. He said he would have to talk to the GM and would get back to me. I left the car there and he gave me a loner.
The SM called me about noon and the conversation went something like this: SM "Ahh, We can't just take back the car." Me: "The car was sold as a new car in new condition and that the car is NOT in new condition. I have already discussed the issue with my attorney. You are in breach of contract for selling me a new car that is not in new condition.". SM: What do you want us to do?" ME: "Take the car back and get me a new car!!" SM: "I will call you back."
The SM called back about an hour later and said that they would take the car back but that I needed to pick up my car and drive it until they found a replacement. I told him that I felt that the car was a hazard and did not want to drive the car because of possible electrical damage, etc. He said that the electrical system had been checked out and it was driveable. He then said that he use to sell cars in Chicago and that a lot of the cars were sold like that. I started to tell him he was full of crap, but held my tongue, thanked him for his decision and told him I would pick the car up after work.
I began wondered why they insisted that I drive my car. So when I arrived at the dealership this is how the conversation went: Me: "Before I take my car back, I want you to put what we discussed on the phone in writing." SM (now showing anger), " I can't do that until I heard back from Jaguar NA." ME: (Calmly) "Well you can just keep my car until I received that letter. It's not that I don't trust you but I have had this happen before and the dealership told me one thing and did another." SM: (Still visibly angry) "Fine, we will have the letter for you tomorrow." ME "Ok, I will see you tomorrow."