Yes, unfortunately they possibly can if it is a car lot only. If you look closely at all your paperwork you may have signed a power of attorney letter that states that they will transfer the title for you and mail you your new tag, giving you a temporary tag? Although if you paid cash from an independent seller and own the car, you will only be in serious trouble with the state Motor vehicle dept. and if the former owner sues you if something happens in an accident and it's in their name still. (They should have went to the title office with you and done the transfer, and if they did not, shame ON THEM)
I take it that you have bought a car at a lot, spent alot of your money for the down payment and insurance and now the dealer is demanding that you transfer the title into your own name and insure it as well, if THAT is the case, you really should bite the bullet and transfer it into your name as based on sate law, it is quite possible that they can take the car back only until you get the title tranferred and show it to them and then drive happily away.Although they may CHARGE YOU What they want for the hassle, up to and even over $500 for the tow, storage etc.


