The dealer is sitting on a Mk1 Escourt fitted with an XE (very nice but not my cup of tea), which he's had for some time now.
You have I assume a very nice t34 Escort, which I'm sure the dealer feels he can move on a lot quicker than the Mk1, and he may be thinking that even with the current deal on the table, there is still a nice bit of margin in it if he sells your T34 for the right money.
As per other comments on here you could build to your own spec for the same money.
Dealers sell cars to make money and a living, so I doubt that even at a deal on 16K he is going to loose out.
Can you not get in touch with the previous owner and have a chat. Find out why he sold it, and for how much........