Tl;dr I Lent My Car To A Friend, He Refuses To Give It Back, And The Police Say They Can’t Do Anything Because It’s A Civil Matter.

Tl;dr I lent my car to a friend, he refuses to give it back, and the police say they can’t do anything because it’s a civil matter.
In February of this year, I made the decision to purchase a BMW M4, influenced by a close friend who assured me that he would eventually buy it from me. We agreed to co-own the vehicle, but since my friend couldn't contribute financially at the time, I covered the entire cost myself. The plan was for us to enjoy the car together, and I trusted that he would either pay half the car's price or purchase it from me later.
I left the car with my friend in Minnesota, trusting him to handle its maintenance if he were to use the vehicle. However, he appears to have made modifications without my knowledge, claiming he was fixing the car, though he never specified what repairs were needed.
Initially, we planned to register the car in Massachusetts under my name since I held the title. But my friend objected, preferring not to have Massachusetts plates, believing it would negatively impact his social life, in particular with attracting the females. Instead, he proposed registering the car under an LLC in Montana, which he initiated, but the process was too slow.
By early May, I pressed my friend to return the car so I could register it in Massachusetts, as delaying the registration was incurring late fees. My friend became increasingly agitated and aggressive. He then informed me the car was not operational due to engine flooding, suggesting we had been scammed by the dealership. I suspected he had tampered with the engine without my knowledge.
Despite my efforts to resolve the issue, my friend insisted I sell the car in Minnesota and demanded I pay him $7,000 for alleged repairs. When I asked for the car back, he and his father refused, claiming they had already provided receipts for the repairs, which they had not. My repeated requests for these receipts were met with threats from his father, who warned of potential damage to my career and citizenship and coerced me into considering a sale at a significant loss, while also threatening to increase their demand to $15,000.
The friend paid ~2k towards the downpayment of purchasing the car. The friend then paid $900 towards shipping the car to MN from Seattle, WA. The friend then alleges another 3k in repairs (I have been asking them receipts for this, but the father and son keep telling me that the receipts were sent to me). The father then sent me screenshots of the work. The father and son are working very closely to scam me.
Father also proposes to liquidate the car. Father and son propose to sell the car, then give me my share and they take theirs. Son says he had an offer of 14k for the car so far. They will take their 7k, leaving me with 7k. Father gave a number of 20k.
In total, I have invested around $50,000 in this car, driven by good faith and the expectation of shared experiences with a friend who now shows no mercy.
I have filed a police complaint in MN to get my vehicle back, however the father and child had already informed the cops about their version of the story. The police informed me that this is a civil matter and that they are unable to resolve it.
Father and son then send me receipts that seem like they have been forged.
The vehicle is currently with them and I’m not sure how to proceed from here. Please help me.
I want my car back in working condition, as I have left it, or I want my money back. I don't want to deal with the hassle of going to court. People have told me that this is a very long and painful and expensive process. I have no time or energy for this at the moment.
Son has previously warned me that his family is wealthy and that they can destroy me. Father has said that me making the wrong decision could "bite" me in the future. Father and son are coming up with new stories and narratives to make them seem innocent.
I don't know what to do.
Some options that I'm considering:
1 - try to settle out of court. maybe take the 20k offer. but idk if they will take their 7k from my 20k. I'm scared.
2 - pay them the 7k that they are asking, then take my car. But I fear that my car isn't functioning. If it isn't, then I don't know what to do.
3 - go to court, file a civil law suit. I fear that the father and son are already filing fake cases on me.
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