Ca – Dealership Says Dmv Refuses To Register Car Months After Purchase; Asking Me To Return It. What Are My Rights?

Location: California

I bought a car in late November 2025 and put 12k down whilst financing another ~35k. I got a call from the dealership earlier this week stating that I need to return the car as the DMV will not register it. Apparently the car was registered multiple times in multiple states right after I bought it and the DMV has outright refused to register it for that reason. The person who initially called me was a new sales person (my sales guy is now gone, but was still working there and responsive as of 01/31/2026) and was shortly followed up by a call from a brand new GM who got there and took over two weeks ago. The new GM stated over the phone that this was dropped in his lap as soon as he took over. My complete gut instinct is that they were both fired over this as they both seemingly "left" within the same 7 day period.

I bought it from a legitimate Acura dealership that falls under a nationwide conglomerate. The car came with a great CPO offering and specifically bought it in that time frame because end of year car sales are usually down so I figured I could get a decent price on it.

I can't find anything on the market comparable unless I up my budget by $6K and this will likely increase with time as the last model is 2025 and future models were canceled. Additionally, the credit bureaus aren't going to reflect the returned car anytime soon so any new purchase I do make is likely going to come with higher interest rates. The GM offered me an undisclosed discount on any car they currently have on their lot. But they don't have any car I actually want and I can't help but feel I'm being forced to buy an ugly SUV in order to avoid terrible prices elsewhere.

My concerns:

1. If I return the car, what am I legally entitled to? Full refund of down payment and all payments made? Reimbursement for registration fees, taxes, insurance, etc.?

2. Do I have any claim for damages given that market prices have increased and I may have to spend more to get a similar vehicle?

3. Could this impact my credit (since the current auto loan will still appear open for some time)?

4. Is the dealership legally allowed to force me to unwind the deal months later due to their title/registration issue?

I have not yet signed anything agreeing to return the vehicle.

Do I have any recourse under California law?