Car Purchase Situation. Manufacturer Trying To Repo After Third-party Purchase

Location: Pitt County, North Carolina

Apologies if this is the wrong flair for the post, I couldn't find one that sounded fully correct so went with this.

Background:

So I recently purchased a used 2021 Toyota RAV4 LE from a third-party seller on 6/22/26. I paid in full. Here's the kicker, it was abandoned, and the third party was a tow-company.

I purchased the vehicle here in NC. The seller went through the legal process of checking for liens, which he said none came back on the records, and I double checked when considering a car loan with my local credit union (didn't end up getting one for other reasons) where they also said the vehicle had no liens and approved me for a loan. They would NOT have allowed a loan if there was a lien on record.

The seller then attempted to contact the previous owner based on the previous registration of the vehicle and never heard back on an appeal after 30 days. In NC, that means he's legally allowed to sell it and told us how he does it all the time. He filed with the Pitt County Superior Court, I have all the certified documents for the case clearing him for sale, and then initiating the sale to me and requesting a creating of a new title in my name. (Previous title was registered in PA).

I paid the seller in full using savings, paid property tax, put it on my insurance, registered it here under my name in NC. I have all the supporting documents that I own this car (except I don't have title in hand yet, but it's in the mail).

Fast forward to 7/8/26 at about 1AM, and there is a tow truck in my driveway with my front wheels in the air. Luckily I was not asleep yet and had a Ring camera to alert me. The repo man alerted me that Toyota had a repo order on the car. Showed me the name of the "owner" and I recognized it as the previous owner from the court documents. I provided the repo man with all documentation and he luckily dropped the car, but informed me that while his company will take my info and leave it alone, this came from a third part firm hired by Toyota, and other companies in the area may take my car at any time.

I have spoken the NC DMV, and all they can really tell me is the title and registration is mine. I have spoken with Toyota multiple times and gotten nowhere, they refuse to give me any information because it's "not my account" and are basically saying "they own the title" and have a lien on the vehicle and the burden of proof is on me, refusing to drop the tow order.

Question:

Long-winded way to get here. My wife is 15 weeks pregnant with our first child. If I allow them to take this car, we're out $17k. Not an option. I've narrowed it down to basically two feasible options.

Option 1: Provide the information to Toyota and hope they drop the repo order and lien. My hesitation here is that Toyota has been as uncooperative and as scummy as possible so far, refusing to allow me to record conversations or get any information in writing. I'm afraid they'll do nothing, or worse, use the information to come after me legally and take try to take the car anyways. I don't know if they actually have my name and address or if they have any legal ability to do so.

Option 2: Attempt to sell the car. I got a really good price on the car due to the situation it was found. While I would not want to sell it to an individual and have them end up exactly where I am now, Kelley Blue Book and Carvana have both given me quotes for $18.6k. While my wife and I love the car, this seems like the most painless solution. But I don't know if Carvana would have recourse to come after me if Toyota then reaches out to them.

Less preferable/feasible options include:

1: Letting Toyota take the car, reporting it stolen, and pursuing a civil case against Toyota for wrongful repo and emotional distress. While I feel pretty good about our legal chances, I don't feel good about the time it would take and stress it would have on my family, especially my wife.

2: Wait is out. Hide the car like I have been and hope that Toyota just gives up in time. Statute of Limitations in NC is 3 years. But I'd prefer to be able to drive my car without fear before that. Don't want my son to be 3 before he can ride in the car we got for his arrival.

Any help in this matter is super appreciated, are the "feasible" options even realistic at all, am I just screwed, please help!