Fair Lawn Police Sgt. Brian Metzler said the victim told investigators his neighbor, Shannon Henry, 23, came to his home Wednesday and offered him cupcakes, NJ.com reported Monday.
Metzler said Henry had previously come to the man's home to ask to borrow money.
"On this particular day, she went to the house with cupcakes," Metzler said. "He let her in the house, and while she was there, that's when she took the keys."
The man did not notice the theft until the following morning, when his discovered his 2010 Kia was missing. He said a bowl of change containing an estimated $10 was also taken.
Police found the car in the parking lot of a church across the street from the man's home and Henry gave the keys to officers while she was being questioned.
Henry was arrested on three counts of burglary and two counts of theft. She was held in lieu of $10,000 bail.