What are your rights when facing possible car repo? Car was never put in your name?

A friend bought a used car in November. The mechanic they purchased from never gave them the title or had the vehicle registered to my friend's name. As far as I know the title isn't even in the mechanic's name. After down payment, they had two monthly payments of $750. My friend struggled to pay last month, and only came up with $500. Now the final payment is coming due, along with the past due amount. The person they purchased the vehicle from has threatened repossession if the balance is not paid in full by month's end and has said they will be out all monies paid which is $3600. They are concerned that they might not be able to come up with the full $1000 owed.

I told them they paid too much for the vehicle (which is salvage and similar vehicles on CL are going for $3000 w/o salvage), and that they should have received the title at time of purchase or had paperwork drawn up to change the title to their name. Is there anything they can do? Is the repossession process being carried out too quick?