If you hadn't put a deposit on the car, it's open slather until someone does. Even a few hundred dollars would have sealed the deal. If you were both in the dealership with different salesmen, and the other guy gets in before you, would you think the same?
I had the same with an e46 m3 almost a year ago. I rang on the Saturday and said I'd get a Pre-Purchase done on the Monday, and I got a call Sunday saying someone put a deposit on it.
Money talks, you should have put money down.
.: 2010 E71 X6M - stock, daily driver, towcar :.
.: 2008 E92 M3 - 6MT, Carbon Roof, Eibach Springs, Megan Axle Back exhaust :.
.: 1997 E36 323i Frankenstein - too much to list, track whore, stripped, caged, MoTeC, S85B50 :.
.: 1994 E36 M3 3.0 - 19" BBS LM Reps, Bilsteins :.