It has been more than 30 days since we bought a car, and the dealer says they are trying to get the title. Can I return the car and cancel the contract?

I paid cash on 8/7/2013

You aren't supposed to fork over the dough unless you have the title in your other hand!
Now you have to jump through hoops threatening the dealer with notifying the state licensing division and the DMV and so on. Sure, TRY to cancel it (how do you plan to do so?), but you already proved how naïve you were, so you need to do a lot of work with the state.

I hope you do not mean real "cash" you paid by check?

But you go in and ask for money back NOW, if they say no, you go to court and file suit to have your money returned.

You aren't supposed to fork over the dough unless you have the title in your other hand!
Now you have to jump through hoops threatening the dealer with notifying the state licensing division and the DMV and so on. Sure, TRY to cancel it (how do you plan to do so?), but you already proved how naive you were, so you need to do a lot of work with the state.

Although I know what you're getting at with this, it's not all completely correct. Many dealers are what are called "Issuing Agents" in that they are licensed to do the paperwork involved in titles and registrations and such. One of the things that being an issuing agent allows them to do is to sell a car without a title in hand with the promise that when the title comes through, they then issue it either to the lienholder or the customer if they paid outright for the car.

Example- Dealer A buys a car at the auction. The dealer that sold the car (Dealer B) through the auction has to satisfy a lien on that title before he can send the title to the buying dealer (A). Dealer A now is holding onto a car that he has no title for but he paid for it. If he is an issuing agent, he can use a POA and sell that car without the actual title in hand at the time. Dealer B satisfies the lien, sends the title to Dealer A, then Dealer A sends the title to the new lienholder if there was a loan on the car or sends it to the customer if he paid outright.

Sometimes what happens when you go through this is you have a problem with Dealer B getting the title. Dealer B is lazy, forgetful, maybe having problems with the original lienholder releasing the title. Now Dealer A is stuck waiting for that title through no fault of his own. Occasionally, they will be unable to get the title and the deal will need to be cancelled. Not saying that Dealer A is never at fault because I have seen plenty of underhanded Dealer A's that never actually issue the title, just keep the money until they are caught. It doesn't happen a lot, but it does happen.

So I have to ask, is the car registered and are you driving it or are you still waiting to be able to register it even though you paid?

If it's registered and you are driving it, it is possible it could take another month for that title to come through... it shouldn't, but it could. I am not sure what the law is in your area on length of time to receive the title but you may want to talk to the dealer and figure out what is going on.

If you weren't able to register it yet, then I would definitely go back and make sure the deal was cancelled.