What to do if I went to purchase a used car but due to a problem with the title both of our loans fell through?

Question Details: The banks will give us a loan but not on this car because it might have frame damage. The dealer has even transferred the title of the car we were trying to buy into our name with no lien holder. I just want my trade-in, my $5502.28 deposit and to give them their car back. However, they are trying to charge me for repairs to my trade-in that they made on it. Also, taxes on the sale of the car we were trying to buy, plus rental fees on their car that we have been driving. I feel this deal did not happen because of their title not being clean and I do not owe them anything. Finally, they have our trade-in offered for sale even though they have not paid it off.

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