In modern society, vehicle theft has become an increasing problem to the general public. Deploying onboard anti-theft systems could relieve this problem, but it often requires extra investment for vehicle owners. In this paper, we propose the idea of PhoneInside, which does not need a special device but leverages an obsolete smartphone to build a low-cost vehicle anti-theft system. After being fixed in the vehicle body with a car charger, the smartphone can detect vehicle movement and adaptively use GPS, cellular/WiFi localization, and dead reckoning to locate the vehicle during driving. Especially, a novel Velocity-Aware Dead Reckoning (VA-DR) method is presented, which utilizes map knowledge and vehicle’s turns at road curves and intersections to estimate velocity for trajectory computation. Compared to traditional dead reckoning, it reduces accumulated errors and achieves great improvement in localization accuracy. Furthermore, based on the learning of the driving history, our system can establish individual mobility model for a vehicle and distinguish abnormal driving behaviors by a Long Short Term Memory (LSTM) network. With the help of ad hoc authentication, the system can identify vehicle theft and send out timely alarming and tracking messages for rapid recovery. The realistic experiments running on Android smartphones prove that our system can detect vehicle theft effectively and locate a stolen vehicle accurately, with average errors less than the sight range.