Can I get a rebuilt title here? -> Need something road legal.

Hey all. I should've trusted my gut on this one, but I recently purchased a 2012 Camry with 90k miles on it. It seemed okay, but I was so nervous as this was my first time buying a car off of marketplace and the dude seemed nice. I asked him a ton of questions, even took it for a test drive, there's no lights on the dash. It runs and drives great.

My problem is, I paid $7500 for what the seller told me was a "rebuilt title" with just a minor torque converter issue. He claimed it was damaged due to hail but had been fully repaired by a Toyota dealership. I was so blinded during the purchase being nervous that I didn't realize I'd signed a salvage title - I'd never seen one before and wasn't even thinking about it.

Turns out he lied. Got the CARFAX and found it was declared total loss in May 2025 with "moderate to severe" hail damage reported on all panels including front, rear, both sides, and roof. There are zero repair records anywhere and no documentation of any hail damage repairs. The "Toyota dealership repair" story was complete BS. He did provide some sort of police inspection document, claiming it was for repairs, but it's actually just a VIN inspection. Maybe I can have it re-assessed, I don't know. I'm going to the DMV on Monday morning to see what my options are and try to get a rebuilt title.

Here's the weird part though - I've gone over this car and any hail dents are nearly invisible. It looks completely normal. The car drives perfectly except a slight pull going from 1st -> 2nd gear, which is common in these models and I'm okay with fixing. So either someone did major undocumented bodywork, or the original damage assessment was way off, or I'm missing something obvious.

I'm trying to figure out how screwed I am here. Paid $7500 for what's essentially a salvage car. Is there any chance of getting a rebuilt title without repair documentation? Is this even worth trying to fix or should I cut my losses? I'm located in Arkansas if that matters for the title process.

First car purchase and I feel like such an idiot - definitely learned my lesson. The car market is fucked for anyone on a budget. Any advice would be really appreciated.