A Metro Detroit woman who bought a used car from a small dealership in March found herself unable to legally register the vehicle until the seller fixed a title problem — a hiccup that under Michigan law should not have happened and that only cleared after local media intervened.
Taylor Kelly purchased a 2015 Chevrolet Impala for just over $4,000 on March 2 from All City Auto Sales in Detroit. When she went to a Michigan Secretary of State office to transfer the title and register the car, officials told her state records did not show her as the vehicle’s owner and that the registration could not proceed. The move exposed an active lien on the vehicle’s title, information confirmed by the Secretary of State and local police, the family says.
Taylor’s father, Marcus Kelly, accompanied her back to the dealership and was told initially there was nothing that could be done immediately. The dealership disputed the family’s interpretation, saying it had obtained the car free and clear from lender Credit Acceptance. Derek Hunter, co-owner of All City Auto Sales, acknowledged to reporters that title problems sometimes arise from missing signatures or paperwork errors and said the temporary plate issued to Taylor remained valid while the issue was addressed. Hunter promised the matter would be resolved by the end of the next business day — a promise the dealership kept after the family contacted an investigative reporter.
Legal experts say the incident illustrates a preventable gap in some used-car transactions. Auto law attorney Steve Lehto told the station and the family that Michigan dealers are required to have the vehicle title in hand at the time of sale so buyers can immediately complete registration. When buyers cannot register right away, Lehto said, it is a red flag that paperwork or lien obligations were not properly handled by the seller, and responsibility rests with the dealer to clear the title before or immediately after the sale.
Industry observers and consumer advocates warn that temporary plates can mask title defects for days or weeks, giving some dealers an incentive to finalize sales while lender liens or missing documents remain unresolved. In such cases, the buyer may discover later that a lender still holds a financial interest in the car or that signatures and transfers were not properly executed — leaving the purchaser unable to obtain clear title and at risk of financial or legal complications. Michigan law exposes dealers to potential fraud claims and regulatory penalties if they knowingly sell vehicles without clear titles.
After the dealership corrected the paperwork, Taylor was able to proceed with registration and drive the Impala legally. While the technical problem was fixed quickly once media attention focused on the case, the episode left the family shaken and more cautious about future purchases. Consumer advocates recommend prospective buyers demand to see the title, verify it is clear of liens, and confirm the dealer has the paperwork needed to complete a transfer before handing over payment. If issues arise, contacting the Secretary of State and local authorities can force faster resolution and create an official record of the dispute.