I was approved for a car from a dealership in California . The dealer then told me five months later I was not approved. Can the dealer take the car back?
Sure, unless you can write a good check for the cost of the car, in which case I'm certain they'll let you keep it.
The situation may not be as simple as Mr. Reed stated. If there was a valid contract and you have made all the payments you may have a case to keep the car. You should take all of the paper work you have to an attorney for a consultation.