I love dogs, but I would not want to live near a pit bull under any circumstance. And forget the stuff about it being all owner driven. There was a story a while back where a couple had a baby in a crib and their one year old pit bull (that they doted on), chewed off the fingers of the baby while it slept while they were in the other room. Now their kid has no fingers and they have to explain to everyone they let a pit bull wander around their house.
Not saying your neighbor should have ruined your car, but I get the fact he does not want to live near your dog. They have a terrible track record and they have a clear record of attacking people, especially small kids for no reason.