Disclaimer: I am a dealer.
Some of you guys are talking through your nose. You have no idea what you speak of.
If you are buying from a dealer, it is NOT commonplace to receive the title on the spot. Frequently, the dealer doesn't even physically hold the title as it may be in possession of the bank who floor plans the units on the lot, or it may be subject to lien release from the previous owners' lienholder. I've seen it take sometimes as much as 3-4 weeks to actually have physical custody of the title on a unit I have bought and subsequently sold.
Another possibility is that the title could be "full", requiring the dealer to submit for new title, which also takes time. It is very common for ownership of a given unit to change hands between dealers 3-4 times before finally being sold to a private customer. Each time a dealer sells a unit to another dealer, it is recorded on the "assignment" area at the back of the title. Once that area is full, then a new title must be obtained. This can take 4-6 weeks.
All legitimate dealers are bonded by the state in which they do business. This prevents the public from getting screwed.
Just because you bid on and won an Ebay auction, you did not "buy" the coach online. You will actually consummate the transaction at the dealership offices. The dealer will complete a bill or sale, an application for vehicle title and other required paperwork. The dealership submits that paperwork along with the old title and required fees to the state and the state then issues a new title in your name which is then sent to you or your lienholder, whatever the case may be.
Dealers typically do not process any of the paperwork until the green is in the bank.
The only time that a dealer will ever actually give existing title to the buyer is in the event of an out of state transaction. A dealer can only process title paperwork for the state in which he is a bonded dealer. If the buyer is from out of state, it is up to the buyer to take the title to a DMV in his own state and obtain title in his/her name. In these cases, the dealer will properly endorse the title over to the new buyer and then mail same to the buyer once all funds are safely in the bank.
