Quite a story. Certainly sounds like a salesman at heart.
With that said, he's fully entitled to sit on it for as long as he wants with a high price waiting for some fool to come along. Market will sort itself out. Either he's right and he will find somebody or he will be proven wrong in the end when nobody bites at that price.
As far as ownership transferring, I don't know Canadian details but in US if he was a dealer he doesn't need to register cars into his name, but I also don't know details of the dealership process.
I know what you're feeling to some degree, there were a few vehicles that I really wanted to buy and have made reasonable (as I'd consider) accommodations towards the seller that would make me the obvious choice but alas sometimes things just don't work out and you can't really force somebody's hand with anything else other than money. Money talks period. (and even that sometimes isn't enough if the item is not for sale).