Used Car Dealer... Did I do the right thing?

[vcv]

From Arkansas. Put a $500 deposit on an SUV in Dallas Texas (internet ad). Buying from a dealer. Talked to the guy several times on the phone, sent me extra pics, etc. Everything sounded good. Made the 6 hour drive down this morning to get the SUV. The only surprise was AC did not work, but I was willing to proceed anyway. As we were walking to his "office", inside an office building he mentioned that he has got to "go back to the auction" to get the title and would be mailing it to me in a week or so. WHAT?! I stopped there and we discussed the issue for a few mins. He kept saying it was "normal" and this is the way he does all his business, and went on to say the "auction" never gives him the title right away. I told him I have nothing protecting me, and I said further more you don't even own the vehicle if you don't have a title. We argued a little more and I told him I was walking away from the deal. He said I would lose my deposit, but I reminded him I paid through Paypal and I would file a dispute. He said he would refund me the deposit and did so from his phone before I left.

I would think it would be illegal to sell a car without a title? Tell me this is not normal?

BTW.. this dealer did not have a traditional used car lot. He had maybe 10 or so cars parked out in the parking lot of an office building. Says he uses that office and sells only online.

Thanks in advance for the comments.