If the car was never stolen, if it was legitimately "borrowed" or used with the owners consent, you will not be charged (or shouldn't be). The car doesn't have to be reported as stolen for a vehicle theft to occur. Say, for example, a car is stolen from a parking lot while the owner is shopping at the mall; the police stop the car with the thieves inside before the owner even knows it has been taken. That's a vehicle theft and the car wasn't rotted stolen. It would be interesting to know just why the police thought the car was stolen, what information they had, and why they arrested you. If they had no probable cause the arrest was unlawful. My guess is that there are some missing facts in you scenario. Fortunately, you were released, but that doesn't account for the fact that you were arrested.
Answered on Dec 13th, 2011 at 9:09 AM