The driver, Kelvin Wisely, of Kaikorai Valley, with his pit bull Odin, was driving towards Andersons Bay to arrange repairs for Mr Wisely's Harley-Davidson motorcycle.
But, just short of the intersection, about 11.30am, flames emerged from beneath the bonnet of the uninsured V8 car and from the centre console.
Mr Wisely, holding his dog and motorcycle part in one hand and a cigarette in the other, told the Otago Daily Times he decided to drive the short distance to the nearest turnoff, at Strathallan St, to get the car out of traffic.
Mr Wisely said he knew he was "in trouble" when he saw the flames but believed he had enough time to get off the busy road before the car exploded.
"They don't normally go up just like that, do they? That's only on TV, I think."
A salesman from a nearby car sales yard used an extinguisher on the fire until the Fire Service arrived.
Mr Wisely, a driller's offsider, said he and his dog were not injured.
However, the uninsured 1990 vehicle was badly damaged.
