You've got a few different options. The worst case scenario "option" (for the dealer who sold the vehicle) is contacting the DMV's investigations unit to find out why the dealer didn't inspect the vehicle before selling it to you. They were required to smog check it prior to sale; which apparently they did not.
Or, the other option, you can return to the dealership and inform them the vehicle has an illegal air filter assembly, and ask them to correct and smog check the car.
The third option, return to the dealer and ask for a portion of your money back so that you are able to pay for repairs and inspection.
The fourth option, return to the dealer and ask for you money back in full for returning the vehicle back to them; assuming you are no longer interested in keeping a vehicle that will not pass the smog test.
Sounds like the ball's in your court. We'd recommend handling the situation as amicably as possible, with an outcome feasible mainly for you, and in part, everyone involved.
posted by SmogTips Support