In short, yes, buyers can sue a dealer for not giving the title. So why wouldn't the croupier give you the title right away? It's often a sign of a problem. There may be a loan or a lien on the car that hasn't been paid off. The dealer may not have successfully obtained the title in the first place when they sold it to you.
Some dealers commit outright fraud. Others have borrowed money from people and have used their car titles to secure it and cannot legally transfer it. They may not have done the right tests if their state has strict environmental emissions testing rules and they may not even be able to obtain a label and title. You shouldn't wait if a croupier doesn't give you the title.
There is a chance that, within 30 days, you may not receive the title and license plate of your new vehicle from the dealer. This can happen for many different reasons. Most commonly, an error occurred with the documentation sent by the dealer. This can be anything from a badly signed agreement to incorrect numbers that don't match the records.
If you bought a car with a faulty suspension, faulty transmission, or other defects from a private seller and the seller refuses to reimburse your purchase or pay for mechanical work, your best legal option could be a small claims lawsuit. Most states have a time limit for car dealers to give you the title to the car you bought, and it's usually about 30 days, as usual. This means that if something happens to the car, you have no warranty and the private owner doesn't owe you anything. The manufacturer's warranty may include the cost of repairing specific mechanical or electrical problems in parts of your car.
The car dealer made a false or fraudulent advertising statement regarding the car you purchased. If you're in New York, the Department of Consumer and Worker Protection published a guide to the Used Car Consumer Bill of Rights that addresses consumers' rights when buying a used car at a used car dealership. Most states have a time limit for car dealers to give you the title to the car you bought, it's not a long time limit, and they usually only have about 30 days. For example, you bought a warranty when you bought the car and pay for repairs after having mechanical problems.
Unfortunately, lemon laws often don't protect buyers when they buy a car through a private seller. If you buy a “lemon,” meaning a car that has defects that can't be reasonably repaired, Lemon's laws help consumers find relief in the form of cash settlements, buybacks, or even replacement vehicles. The Federal Trade Commission (FTC) requires dealers who sell used cars to publish a Buyer's Guide on every used car they offer for sale. This means that the dealer did not act reasonably when they lied to or misrepresented material information about the car.
The best practice is to fill out a sales bill when making a car purchase with a private seller and taking this sales bill to the DMV. Another reason why a car seller or dealer might not transfer title to you is that the property cannot be transferred because of title liens.