The vehicle, an older Holden V8, hit the level crossing equipment head-on, dislodging the alarm post’s concrete base, carrying it forward on to the level crossing.
Fire and Emergency New Zealand volunteers, local police, and KiwiRail staff were quickly on the scene.
When the Otago Daily Times arrived at 2.23pm, the driver, believed to be in his late 20s or early 30s, was out of the vehicle having his bloody nose attended to by a paramedic.
Bystanders said the crashed vehicle was one of a group apparently racing each other.
The crash occurred just after the vehicle had turned right into Thames St from Itchen St.
The area, adjacent to the Oamaru Victorian Precinct, was busy with holiday weekend pedestrians.
Several visibly upset bystanders remonstrated with the driver and the occupants of another vehicle that was apparently connected to the incident.
