The flag fell on a one-man demolition derby in Caversham Rd, South Dunedin, yesterday afternoon, when the driver was arrested.
A 27-year-old man repeatedly drove a Honda sedan into several cars parked on a vacant section.
Senior Sergeant Phil McDouall, of South Dunedin, said police had spoken to the man on "driving-related matters" yesterday morning, but would not specify what those were.
The man later drove into cars parked in a gravel car park near where he lived.
Police believed he owned the vehicles involved.
South Dunedin police arrested the man and charged him with disorderly behaviour just before 3pm yesterday.
He would most likely face further driving charges, Snr Sgt McDouall said.
The man rammed a car on to the top of a railway embankment, and rail use was suspended through Caversham while police established if the car posed a threat to safety.
Taieri Gorge Railway operations manager Grant Craig said an excursion train to Pukerangi was delayed for about 15 minutes yesterday afternoon.
During collisions with the cars, the Honda sedan the man was driving leaked oil on to its manifold, creating large quantities of smoke.
Fire services attended the scene, but the car did not catch fire.