Can a car dealership be held liable for selling a tradein that was involved in a hit&run, without title change

Answer 1

As long as the dealership has records of who they sold the vehicle to, they are not liable for the actions of the buyer.

In many cases I sell cars to out of state buyers. I assign them the title, and keep copies of the paperwork. They are responsible for the title transfer in their state. If I do not issue them a temporary tag, I am not even required to verify that they have insurance!!

If the customer does not title the car in their home state, I can not help that, nor can I be held liable!! If the car is used in a crime, I will provide copies of the paperwork to law enforcement, but that is the extent of my responsibility