Used Cars: Illegal for dealership to tow my car, hole in the wall, proper documents

Question
Can a hole in the wall car dealership tow my car even though they do not own it anymore?
The finance company already paid the dealership for the sale of the car and I just owed the dealership 300$, which is total profit and going into their pockets anyway...I was procrastinating in making the payment so the guy who owns the dealership had my car towed. I am up to date making payments to the Financial Institution who gave me a loan, so does the dealership have that authority to tow my car, since they do not technically own it anymore?

Answer
Arlene,
Something isnt adding up.  There should only be 1 lien on the vehicle, which would be that of the finance company, which would also be the absolute and only people able to legally tow your vehicle.  Now, there is a chance that the dealership put a second lien on the title for the $300 that you owed them, if they did, then they also would have a right to tow the vehicle.
But if this dealer did all of the proper documents on the $300 you owed them, they may have a right to tow the vehicle.  I just dont know of to many dealerships that would go through all of the proper documentation over $300.......they all should....but a lot do not do all of that.
They would have to do a contract, and enter a lien, to do everything proper, to have authority to tow the vehicle. So I hope this helps.