I wonder how you go about checking liens? Do you go to DMV, or the courthouse, or what

This could easily happen to ANYONE! Like Yorkiemom55 posted, there was a dealership in our town, about 15 years ago, that was doing all that shifty stuff.
It just sucks that we feel so safe going to what we think is a legit dealer, and end up getting burned. I guess there will always be those that find a way around the laws so they can rip off others