The PSNI say they believe the car was set on fire in the Dromintee area just before 11pm on Monday, 22 February.
They now say that the vehicle has subsequently been recovered for further investigation.
The PSNI say they received a report of a vehicle on fire at Dromintee, a few miles south of Newry, 20 minutes after the bomb exploded.
However, because of concerns that the vehicle may have been a lure to attack police, officers were unable to respond as fully or as quickly as they would have wished. It has now been recovered.
'The PSNI is committed to investigating the courthouse bomb attack but it has an over-riding responsibility to protect and preserve life,' a spokesman said.
'This applies as much to police officers and staff as to everyone else in the community'.
The police investigation into the bomb and the recovered car is continuing and they have appealed for further information.
The car bomb weighing up to 250lbs exploded outside the courthouse on 22 February.
No-one was killed or injured in the blast, which is being blamed on dissident republicans.
