The McLaren, worth about $400,000, collided with a Toyota hatchback on the Hume Highway in Yagoona about 1am today.
The front of the sports car peeled open with glass, debris and parts of the engine scattered across the road.
After the collision, the McLaren was sent into the brick fence of a property.
“I heard a big noise like a boom,” a resident said.
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None of the passengers or drivers in either vehicle suffered serious injuries.
The McLaren driver doesn’t own the car – rather, it is a rental.
Police told 9News that at this stage they believe no one is at fault and are yet to determine if speed was a factor.
