Overhaulin'

Can a car dealership sell a car when the original lien holder has not released the title?

I bought a used car back in Dec and have not received my permanent license plate or registration yet. I called the DMV and was told that the dealership had not sent in the paperwork for anything other than the temp registration. I was told to call the dealership and get a new temp registration while they filled out the paperwork and if they did not to then go to the DMV and buy a temp and file a complaint against the dealership. I got the run around from the dealership yesterday saying they're not allowed to issue another temp registration and that I was fine with the expired temp registration.. that they had went to the DMV and they were told this. When I asked for proof someone else came out and told me that the original lien holder on the car had not released the title and that is what is holding the process up. They told me to come back in a week and they would give me another temp registration. I bought the car in AZ. Can a dealership sell a car with no title in hand? For Likable: I was issued a temp registration and temp paper license plate when I drove off the lot on Dec 27, 2007. Both of those expired Feb 12, 2008 which prompted me to call the DMV and ask them where my plates and registration were. I have financed this car and paid my first payment at the end of January. In addition the car dealership told me I would receive my plates from them and not the DMV. When I questioned the dealership they said they use a third party title service and registration service. I read my state law and it stated that the original lien holder has 15 days from being paid in full to send the title to the owner or other lien holder who took over the lien on the car. So.. from what I gather is that the either: A) The orginal lien holder is not in compliance with the law or B) The original lien holder hasn't been paid yet.

Public Comments

1. Go to the dealership! You paid for the license when you bought the car. at least that is the way it usually goes. I've never heard of such a thing!!! Tell them to fix it or your getting a lawyer!! Good Luck
2. No, they cannot. I work at a major car dealership, and we cannot do that. If you leave our lot, and you get pulled over by a cop, and you have no proof that the car is yours. YOu will get in trouble, and so will we!! Also, you need a temp license plate for your car. Its already Feb, and you still have not received anything? Did you buy the car cash, or finance (not in house finance)
3. No not in M.I. or I.N. as a matter of fact they are not even by law supposed to put it out on the lot. I believe most states would be consistent with this it is fraud. Call your better business bureau and your state police they may be able to help you. Get nasty quick Boss
4. You better go down to the dealership today and fix this!!!! You paid for the plates, they have to send them to you within 30 days of the temp tag being issued. Why would you drive around on an expired tag??? If you get pulled over the cops won't want to hear your excuses...you can go to jail for that.
5. It is understandable that a dealership would sell a car without having the title in hand...otherwise they would need 2 lots to hold all of the cars that were waiting for lein holders to release title. That being said, it is unreasonable for them to even ask you to drive a car without a current tag or temporary registration. Should you get a ticket, they certainly would be the one's to pay for it. You should go back to the dealership and raise the roof over this. You have paid for something that you haven't recieved and are now being told to break the law. They must take whatever measures are necessary to bring you within compliance of the law. Good luck
6. They have to issue you another temporary registration. Who do they think they are? they are out of line. If they don't give you another temporary registration report them immediately. Event though its irritating that you haven't gotten your plates, and registration, as long as you have those 90 temporary registrations you can drive around in the car. As long as you have those your fine to drive around while your waiting for your application to be processed. Call them up, and threaten to report them to a DMV investigator, and that will get them in gear. Sometimes the dealers are powerless, and just have to wait on the title. Find out what the hold up is exactly, and if it's out of their hands try to be patient, and drive around using our temporary registration. If their just being lazy, and really not pursuing it for you, report them to a DMV investigator. Greg http://www.sell-cars-for-profit.com/
7. I do not think there is anything shady going on with the title here. It is probably just an excuse that they are using. I would go back down to the dealership immediately and demand a new set of temp plates and give them a deadline for getting your hard plates. You paid for them they have to gt them for you. Do not continue to drive on expired plates. Even if you have to go to the dmv and get temp plates yourself and file a complaint! Go and raise heck with the dealer. Also call your lender as they can help put a little pressure on the dealership. You do have proof of ownership if you have a bill of sale!
8. dealers sell cars with the titles not in all the time.its either the lienholders fault or the payoff was short to the lienholder and they wont release the title until getting all funds due.the dealer is probably trying to get the payoff $ from the original owner so they wont have to pay.be patient-everything will work out.
9. No they can't