About a dozen onlookers at the corner of Matthew and Neill Sts, in Abbotsford, looked on as police spoke to a man understood to be the driver of a grey saloon that lay on its side several metres from the road.
The man, who appeared to be uninjured, was escorted to an unmarked police car while the Otago Daily Times was at the scene.
There were no reports of injury, the spokeswoman said.
A bystander said the vehicle had become airborne after leaving the road.
His neighbour had grabbed a fire extinguisher because the cloud of dust the car created was so thick it was initially mistaken as smoke.
Long-time Neill St resident Graeme Reid said the speed limit along the stretch of road needed to be policed as some drivers used the road as an "absolute race track".
"It’s just hopeless, they need to do something about it," he said.
A police spokesman said one person was assisting police with inquiries.