[Janni]

Here's my bet...

Did the owner buy the car for cash or was there a lien on it? (His paperwork MAY show the first lienholder - or it may not, it it was done outside the dealership.)

I fear he has taken your money, spent / disposed of it, and now cannot get the title because its in the hands of a bank / credit union and he does not have the funds to get the lien released.

Admittedly, I am not familiar with the TX tax laws, but his excuse seems ODD. Most taxes are paid at the dealer and the car is then registered. (When's the last time you went to a dealer and had to then go to DMV and pay MORE money???) Dealers collect the taxes on behalf of the state. Now if he did not register the car at the dealer, I suppose its possible the not pay the taxes due at registration (like doing an out of state transaction...) But again - if you've already PAID him, the taqxes due thing is a lie because he does have enough $$$ to pay them. He may not, however, have enough money to pay off the lien, and therefore, cannot get the title. And is DMV gonna make him register the car for a year in order to sell it? That doesn't seem right. Lastly, if the car was paid for in $$$, then the dealer would have given him the title - so yes, he would have it.

Maybe the Texas guys can help out -but I'd start with contacting the Texas DMY in his area for starters. And then, unfortunately, you may need an attorney. I'd be afraid that the car is going to be the subject of a repossession... especially if he has not paid off the loan.