The Saturday morning incident is the third time there has been a collision between a train and a car on Foyle St.
Last year, a vehicle was hit after a driver failed to stop and continued over a level crossing.
A courier van was also hit by a freight train at Foyle St in 2008.
Oamaru Community Constable Bruce Dow said the latest incident occurred between Foyle and Weaver Sts, early on Saturday.
Const Dow said a 59-year-old man had taken a shortcut home along the railway line, but his vehicle had become stuck in the ballast and was struck by a train.
Although it was "illegal and stupid to drive along a railway corridor", it was too soon to say if the man would be prosecuted.
Although a Kiwirail spokesman said there had been no damage to either the train or the tracks in this instance, Oamaru Steam and Rail Society manager Harry Andrew said he was not surprised incidents kept happening in the town.
"There are so many arrogant people out there, and they are not just young people. I can hear why there have accidents - because of the people.
"They don't understand that the train just can't stop."
Mr Andrew said the society, which runs trains between the Oamaru Victorian Precinct and the town's harbour, had also had trouble with motorists who constantly risked not only their own safety, but also the safety of the society's members, through poor driving.
"We are having problems.
That's why we are putting lights there, on our crossing on the end of Humber St."
The installation of flashing lights at Humber St would require vehicles to remain stationary until the lights stopped flashing. However, Mr Andrew added it had been a constant battle to educate motorists about the dangers. They simply did not get the message.
"I drive trains for a living and I have seen people drive around barriers, so what can you do?"
A freight train driver escaped with minor injuries after an engine derailment at Hinds, near Ashburton, yesterday at 7.54am, APNZ reported.
Police southern communications spokesman Greg van Tuinen said the engine was not pulling any wagons and no other vehicles were involved when it derailed after entering a passing loop as it headed south through Hinds.
