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Why did you wait from 2007 until now to deal with this?
You are too late to sue this person because the limitation period has now passed.
However, there is another route you can go if the police will not assist you.You can attend at the Justice of the Peace's office in any criminal court.You simply walk in, tell the JP's secretary what you want to do, and he/she will give you a form to fill out (basic information and your allegations).Then after you hand it in, you'll speak to the JP and explain the basis for the allegations.Then if the JP decides there is enough to lay the information, he/she will schedule a pre-enquete (relatively brief in camera hearing to determine whether or not to proceed).Be prepared to bring any evidence or witnesses you might have for that.
As well I suggest you retain a lawyer to send a letter to the alleged owner of the car telling him/her that the car is stolen property and that is belongs to you and that you require it back by a deadline that you provide. The owner of the car should be returning the car to you and suing your friend if your friend was the one who sold it to them.