Lexx,
I do not know how things really work (work=BAR) in the people's republic of California, but I have had dealings with many other states.
I was always able to walk in the DMV (or equivalent for that state), show them the paperwork, hand over some cash (get a receipt) and leave with a plate.
The suggestion from this person is that you contact the dealer first and if no love there, go directly to the DVM.
I have half a bet that the dealer is holding the papers to hold the cash for his own use. The longer he can string you along the longer he gets a free (to him) loan.
Matt
