Tips on Buying Cars: Sold used car with existing lien, thank your lucky stars, real jam

Question
Recently purchased a used vehicle.  After a couple days I get the time to go to my insurance agent to sign the paperwork adding this car to my existing policy.  The agent calls the dealer to verify the company the loan was taken out with.  A couple minutes after the agent gets off the phone, I receive a call from the dealer.  They are calling me to let me know that the car they sold me had an existing lien from a previous owner (the person who traded it in to them) that with this lien I can never receive a title, and they should have not sold the car to me.  Yet, they wanted to offer me another vehicle (at about $2k more than I had paid for the current one).  When I turned it down, they said they would work on another "deal" for me and would get back to me.  I've called several times and get the same story "well, since you wouldn't take the other car, we're trying to find you something else".  Now, not only do I have the worry of being sold a "junker" to get me off the dealers back, I also fear that the original lienholder will make an attempt to repossess the car.  The dealer admitted they did not do their homework on the vehicle, and my loan company is going to want payments made on a car I can never own.

Answer
Thank your lucky stars you did not buy privately as you could be in a real jam right now, you bought from a dealer and any previous loans becomes their problem.

The dealer don't want to loose you as a customer and are trying to sell you another car, you are intitled to a full refund if dealer don't submit a title to you.

Return vehicle and demand a refund as you don't want any other vehicle, or contact legal advice, I don't know your location so I can't guide you, but for starters go to this link on my website     http://www.usedcartips.org/installment.html    you will find a law firm, open the link and navigate to " free case review "

Ray