Lemon Laws: Many jurisdictions have lemon laws that protect consumers who purchase defective vehicles. These laws may entitle you to a refund or replacement if the vehicle meets certain criteria for being a lemon. Depending on the law, the dealership's possession of the title may or may not affect your rights under the lemon law.
Purchase Agreement: The terms of your purchase agreement with the dealership may also be relevant. The agreement should specify the conditions under which a refund or replacement may be provided, including any requirements related to the dealership's possession of the title.
Good Faith: If the dealership is unable to provide the title because of an issue on their end (e.g., they never obtained the title or there is a lien on the vehicle), they may still be responsible for fulfilling their obligations under the purchase agreement. However, if you knowingly purchased the vehicle without a title or with knowledge of title issues, your rights may be limited.
To protect yourself, it is important to thoroughly review the purchase agreement before signing and to insist on receiving the vehicle's title when making the purchase. If you discover problems with the car or the title after the purchase, consult with a knowledgeable attorney familiar with consumer protection laws and regulations in your jurisdiction. They can assess your specific situation and advise you on your rights and options.