Police officers were returning from Dunedin on Sunday night after monitoring hundreds of boy racers in Operation Big Cruise when they saw the car about 8pm near Becks.
Sergeant Bruce Martin, of the rural drink-drive squad, based in Alexandra, said when the driver, who held a restricted licence, noticed police, he tried to hide on a side road.
Upon inspection, police found the car to have only one working headlight, a wheel nut missing from each wheel and front tyres so bald they were showing canvas.
There were four passengers - the 25-year-old unemployed Queenstown man's partner and three children aged 5, 3 and 6 months. Sgt Martin said only the youngest child had an appropriate car seat.
"Our overriding responsibility was to ensure the safety of the people in that vehicle and other road users."
Sgt Martin said the man was on his way to Dunedin to swap the car.
Police escorted him to the Alexandra Police Station where the car was left.
They drove him, his partner and children back to Queenstown.
Sgt Martin said the car was in a state far worse than any of the boy racer cars he saw in Dunedin.
It had previously been "green stickered" because its suspension did not meet regulations.
The man was issued fines totalling almost $1000 for driving a green-stickered car as well as various other infringements and charged with reckless driving.
He will appear in the Alexandra District Court next month.
Police also intended to refer the incident to partner agencies.
