Wanaka volunteer firefighters have extinguished five deliberately-lit fires on the corner of Chalmers St and Stratford Tce since January 9.
The first four were vegetation fires, all between midnight and 2am.
New Zealand Fire Service fire safety officer Stu Ide, of Queenstown, echoed police concerns yesterday, stating the vehicle fire was clearly suspicious and had the potential to kill.
Mr Ide spent several hours investigating the burned-out vehicle yesterday afternoon and said it appeared sticks from a nearby real estate sign had been used to set a fire outside the car.
It did not appear accelerants had been used.
He was particularly concerned because the car ran on lpg "and so when the fire started to develop it was a potential bomb about to go off".
"That could have injured people nearby and firefighters. That is a concern. But the lpg tank did not rupture," Mr Ide said.
The location and time of each fire indicated they were connected, he said.
"This will be treated [in the courts] as arson. It can carry the penalty of seven to 14 years [in jail].
"There are houses nearby and people were sleeping. The potential for loss of life is huge," Mr Ide said.
The firebug's chosen location is on or near a secluded roadside reserve near Wanaka's golf course, an empty section, several homes and a public walking track.
Constable Bruce McLean said two fires were lit early on January 9, the third on January 10, the fourth late on January 12.
Yesterday's fire occurred at 1.30am.
"It does seem the first ones weren't major. The damage was superficial.
"But setting the car alight is an elevation," Const McLean said.
Police have not linked the fires to a particular suspect.
The Ford Falcon had been parked in Chalmers St since January 16 and police are attempting to talk to the owner, who is not a suspect.
The police are calling for Wanaka residents to remain vigilant and dial 111 if they see anything suspicious.
