benefit to dealer to hold my paid for title?

Question

bought a new car at a large new car dealership 2 months ago. even though i paid cash i still have not received my title. i have now been told it takes 3 - 4 months to get my title. this is the 2nd time i have run into this at this dealership. last time it took 2 months. what is the benefit to the dealership to hold on to this title? i have bought the same brand from a different dealership and received the title in about 2 weeks. got a good deal and like the dealership but this is ridiculous. their excuse is the are a large dealership my thought would be that a large dealership wpuld have better service and contacts not fewer. there must be some financial reason to this but i just can't figure out what it is. obviously they have my money and my car title but it would seem that using legal accounting practices they couldn't claim both as their's or can they???

Answer 1

You didn't say what state you are in, and different states handle their titles differently. If you have received your plates, that means basically the state is processing the title. Some states the agency that does the plates also do the title and the title comes with the plates. Some states it comes from the state itself, and can take a little time. But you said you have been to a different dealer and it only took 2 weeks. And that sounds about average whether the state does it or the dealer gets it. The only other thing I can think of is if the dealership made a mistake and put a lien on your car!! And in some states, the title goes directly to the lien holder, and you wouldn't get it. So, if you have your plates, I would take a trip back to that dealership and get to the bottom of the issue. Speak to a manager. If a sales manager gives you the run around, see the general manager. Having worked in dealership offices, I know it is the office that usually does the paperwork and the titling/registration work. So it may be a better idea to speak to the office manager! They may be able to get to the bottom of the situation faster. If they have sent the paperwork to the state, they will have records of when and where. Ask to see the receipts or records. Check or ask to make sure there isn't a lien on the vehicle and that is the reason you haven't received it. If it was their error with a lien, they have to straighten it out and get you a clear title. Be firm and make reasonable demands..don't lose your temper or you may not get anywhere!! Go up the channels..not directly to the top. Work your way up there, if you don't get what you are looking for from the sales manager, finance manager etc..keep on going until you get an answer, and proof or evidence your title is being processed the right way.
The dealership gets absolutely nothing from holding on to your title. In fact, they can actually lose money if they can't prove to the manufacturer that they have sold the car. It's a bit complicated, but simply, the dealership pays interest on the vehicle until it is sold. If they can't show it has been sold with a copy of the title in the customers name, they pay interest until it is. Just because the car is no longer on their lot, does not prove that it was sold. The dealership needs to provide proof.

Answer 2

I am an auto finance manager at a dealership. It is not the dealer holding your title...It is the Secretary Of State holding your title! The dealer sends your title to the Secretary Of State (once the check is cleared if you payed by check) so they can register the vehicle and the title into your name it normally takes 2-4 months to get the title sent to you via USPS.

Answer 3

That's ridiculous. There is no benefit to the dealer, and in fact it costs them some good will. I'd suggest you wander in, find the manager and tell him if you don't get your title in a more timely manner you will be returning the vehicle and asking for a full refund. I bet they will suddenly be much quicker.

Added: You are only allowed one temporary paper plate good for 30 days, so if they are issuing you new temporary plates they are breaking the law.

Answer 4

you are right there is no benefit. and in some states like Pa. it be illeagel as your temporary registration only last 30 days. i bet the dealer just cant get them done as fast as they need. or they may be holding your money for a month to gain intrest. but thats agian be a huge no no.

Answer 5

They shouldn't be hanging on to your title so long. Have you asked to talk to a manager, and not one of the workers?

You may need to call a lawyer, a nicely written letter from a lawyer might cost you a few bucks, but it greases the wheels so they move faster.

Answer 6

Large dealer might still only have 1 person doing all that paperwork...................