
Quoting
aaron
It's pretty simple to understand why his lender wants payment - they loaned him money, which he used to buy the vehicle. Title problems aside, he also has full use and enjoyment of the vehicle.
If he wishes to try to get the dealership to rescind the transaction, based upon its inability to provide valid title, he may be able to do so; but that doesn't mean he'll necessarily recover anything from the lender.