car title question (vehicle, auto, credit, mileage)

[diddiyo]

so i'm looking to buy a car, got approved for an auto loan, found a car i like and pretty much all i need to do is pick up the check and go to the dealer to pick up the car. i'm in NJ, the car is in FL. for the car it's worth the trip (c5 z06 with low mileage, 1-owner etc etc).

in order to pick up the check from my credit union i had the dealer fax them a copy of the current title (as is, not with my info on it). now the bank says the title is no good because it still says "registered owner [previous owner]". however below it says "...vehicle described is hereby transferred to [stamp of dealership]" and there's a signature of the dealer under "name of purchaser" as well as a signature from the previous owner at "name of seller".

my local DMV here in NJ told me that the dealer just hasn't completely transferred the title because that way they save on taxes, supposedly a common practice especially since the car has only been traded in less than a month ago. however one of the managers at the bank is saying that he worked at a car dealership for years and that it is not legal to withhold the registration. as of right now the dealer is not the legal owner of the car and therefore he won't hand out the check.

the car is not located at some random parking lot dealer, it's a large (reputable according to most deallerrater reviews) luxus/exotic car dealer in tampa. i don't think it it's in their own interest to screw me over with shady title games.

i guess the only way i'd get the check is if the dealer gets the title completely transferred over to his name and then sends a copy to my credit union?!

any input is appreciated. thanks

[ferretkona]

Many car dealers make more money on financing then the sale itself.
I would think you could find the same car at a more reasonable price on a private party sale.

[diddiyo]

Which is, unfortunately, not an option though because I need to trade in another car.

[ferretkona]

Originally Posted by diddiyo

Which is, unfortunately, not an option though because I need to trade in another car.

You will be money ahead to sell the car instead of using it as a trade in.

[Terryj]

Your credit union is correct, the dealer is not the legal registered owner of the vehicle due to no title transfer has taken place. Just because a owner signs a title does not mean the title is transfered. Had the dealership not counter signed the title then ownership could have been transfered without any problems, now the dealership has to do a title transfer to clear the title for resale.

[diddiyo]

problem has been solved and i just picked up the check from the credit union today.