I purchased a used 2019 vehicle from a large brand dealership on 3/31/19. I bought this vehicle with a check. Upon signing the buyers contract I asked to see the proof of title or that the lien, loan was payed off as I was paying in full for this vehicle. The finance manager stated that they did not have the title it was held up with DMV. When they were not able to transfer my metal current plate. They issued a temp tag instead. When this temp tag fell off the vehicle I went to the DMV and inquired about why they didn't transfer the metal tag. The DMV stated that the vehicle had a lien that was not satisfied until 4/2/19. Which leads me to believe they car kited it to me. They also did not sign the buyers contract. The only signatures were my fiancé and my own on the retail purchase contract with a blank space for authorized dealer representative not signed. They also did not provide us with all the forms we signed in this deal. No buyers guide. From the oil change sticker in the window this vehicle was traded in on or before 3/15/19. So they had over 10 days to pay of the lien on this vehicle.
There is no rule or regulation I am aware of that requires a dealer to pay off a lien before they contract sell it to you - as long as they convey good title in compliance with the contract terms. Kiting is something that private individuals cannot do, but dealer can within certain parameters. If there was not compliance with the 501.976/Used Car Rule disclosures these may raise other issues. If they did convey the title as contracted for and you presumably now have title and tag, not sure what you are looking to accomplish.
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