Q: Can seller report car as stolen after verbal purchase agreement and partial payment?

A: He can call the police, but what you describe is usually a civil contract dispute, not a stolen vehicle. Theft or unlawful taking requires lack of consent and an intent to deprive the owner, and your payment receipts, witnesses, and the seller’s initial permission to possess the car cut against that. Officers often decline to enter it as “stolen” when there was a bona fide sale-in-progress and tell both sides to resolve title and money through civil channels.

Protect yourself: preserve every Zelle and Cash App record, save all texts, and list your witnesses. Send a concise message confirming the sale terms and that you have permission to keep the car while completing payment, then propose a short written agreement or an escrow handoff for the final payment and title. Keep the car insured and address registration status, because police can still cite or tow for registration problems even if the ownership dispute is civil.

If police contact you, explain the purchase, show the paper trail, and state that you are prepared to follow lawful instructions while you finalize a documented resolution. If the seller now revokes permission, offer a neutral solution such as storing the car in an agreed location or conditionally returning it while the money and title are settled to eliminate any claim you are withholding it. If cooperation fails, you can pursue civil remedies such as specific performance for title transfer or restitution for the money you paid.