When the lenders think somethings going on at a dealership they come in and hold the titles and sit there all day. If a car is sold the lender gets their money and then they had over the title so the car can be registered.
About 20 years ago there was a dealer on LI New York that I worked at that floor planned with GMAC and took them for over 500M. Then he tried to get info on the politicians in the area but ended up in jail anyway. He was building apartment buildings, strip malls all over the country and was double and triple hocking the cars to all different banks. Then when business got slow he couldn't pay the interest on the loans and the scam collapsed. Sorta like old Bernie I'd say.
The best part was all the people at GMAC knew he was doing it and when the interest couldn't be paid any longer they said oh look what we found and all played stupid.