Michigan Auction/dealer Says I Owe Another $700 Two Weeks Later After Vehicle Was Paid In Full And Is Withholding My Title. What Are My Options?

Location:Kalamazoo Michigan.

I purchased a 2012 GMC Yukon Denali through an auction/dealer in Kalamazoo, Michigan.

The winning bid was $3,250, and after the buyer’s premium, sales tax, broker fee, title fee, plate fee, and temporary plate fee, the auction gave me a final invoice totaling $4,265.05.

I paid exactly $4,265.05:

- $2,860 cash

- $1,027 by card

- $378.05 by card

I have receipts for the payments. The printed invoice is stamped PAID, and my account on the auction company’s website still shows the invoice as PAID and the $4,265.05 payment as approved.

The dealer also completed and signed a Michigan RD-108 Application for Title and Registration/Statement of Vehicle Sale with me. I was issued a Michigan temporary registration in my name identifying me as the owner, and the vehicle was released to me.

I also have a copy of the previous title and the other vehicle-sale paperwork.

After taking possession, I treated the vehicle as mine because everything I had been given showed that the transaction was completed. I sold my previous vehicle to help pay for this one, and I have since put additional documented money into this vehicle, including major mechanical work/an engine replacement.

About two weeks later, the auction contacted me and said their cashier had made a calculation error and that I supposedly still owe approximately $700.

They are now saying they will withhold my title unless I pay the additional money.

I dispute that I owe the $700. I paid exactly what they invoiced me, their own records say PAID, the payment amounts equal the invoice total, they completed the state vehicle paperwork, issued temporary registration, and released the vehicle to me.

I also have screenshots of the auction terms showing the buyer’s premium and other fees. Nothing I've been provided shows an additional $700 balance.

I have asked them to provide in writing an itemized explanation of exactly where the $700 comes from and the specific auction term or agreement they believe requires me to pay it.

My questions are:

Can a Michigan dealer/auction legally withhold my title under these circumstances because of an accounting mistake they say their employee made?

If they refuse to honor the completed transaction, could I potentially demand that the transaction be unwound and seek reimbursement of the original $4,265.05 plus the documented money I invested in the vehicle after relying on the completed sale?

What should my next step be: Michigan Secretary of State dealer complaint, demand letter, consumer attorney, or something else?

I have copies/screenshots of the invoice marked PAID, online account showing PAID, payment receipts, auction terms, signed RD-108, temporary registration, previous title documentation, and receipts for the work I've put into the vehicle.

Location: Kalamazoo Michigan.