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The leather/leatherette deal could have been just an honest mistake on the part of the TOYOTA dealer. I have leatherette in my car and most people assume it is leather (because it is a BMW afterall). The car was being sold by a Toyota dealer that probably assumed it was leather. How many adds have you seen for a 3-series that states "3.0L V6". Are you going to claim false advertizing on that?
Can't comment on the carfax thing; that's on you. You can't blame the dealer on that one.
I'd bring up the leather issue with the dealer and get an additional discount for it. Leatherette is not so bad and much easier to maintain. If the rest of the car is good keep it. Find out what the deatils were on the accident and see if you can get more money back too. It's a simple alignment of the bumper if the hood is sitting correctly between the fenders.
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