Trying to help my dad buy an eos

Hi all, im new to this site and im trying to get some advice off you guys. Ok my dad has wanted an eos since they came out and now the time has come for him to buy one. We travelled down to london yesterday to a vw dealer who had a 2008 2.0 TDI SPORT 140PS in silver with upgraded 18 inch alloys with 8078 miles on the clock. It is up for sale for £16999. Now a few days before we phoned the dealer he told us the only problem with the car was the front wheels were scuffed and they were getting sorted out (fair enough). So we arrived there yesterday and checked the wheels which looked spot on, only problem was there were a few big chunks of rubber off the side wall trye where it had been curbed and i also checked the tyre depth, which in my opinion had only about 2mm left on both front tryes. Next i had a good look around inside i checked the interior etc, and i jumped the the back seat and when i looked up i could see a hole the size of a 20p piece on the back top left handside head cloth. Anyway my dad took it for a test drive and he was over the moon with it. Now it was time to haggle with the salesman. i told him about the tyres and the head cloth and his reply was we may beable to do something with the tyre with the chunks of rubber out the sidewall but i dont think we can do anything with the other one, and as for the head cloth yes im annoyed as the valeter should have picked that up. He went away to phone his manger and discuss, he came back and said he would sort the one tyre out and get the little hole sorted out, or you can have £200 off the car, my dad was already getting £500 off for a cash deal, he was going to put 12months road tax on and a full tank of fuel. So total cost of car would be £16295. He then agreed on that deal and said he would pick car up on wedensday. My dad then phoned me yesterday and said he was not going ahead with it as he thought the dealer knew about the rip and both tryes should have been sorted before he looked at it. Do you think he has made a mistake or do you think it was a good deal, also these seem hard to come by.