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That's shameful. Totally out the PPI guy and the dealer, at the very least. If I were you I'd ask the dealer to take the car back and pay your money back, and see what he says.
That's a stark reminder that cars that read fantastic on paper may not be as good as they sound.
Having said that, you sound like you know what you're doing with these cars. If it were me, I'd be scratching my head, feeling that something's very off with the car but having no idea wtf is going on. Also the paint on that car may not look great but it's a very beautiful color, so if you end up sorting it out you'll end with a gorgeous car.
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