Emergency services were called to Maple Grove, in the New Farnley area of Leeds, at 1415 BST on Sunday.
Pieces of the car, thought to be a BMW, landed on the roofs of nearby properties.
Oxyacetylene cylinders were found in the vehicle. Police believe the car was stolen and the blast was accidental.
Firefighters were still cooling the cylinders on Monday to avoid a second explosion.
There were no reported injuries, although residents from 11 homes were forced to spend the night in emergency accommodation.
'Like a bomb'
Debris was thrown from the site, and residents reported their properties shook with the force of the blast.
Phil Dean had to leave his home. He said: "There's bits of car all over the place and we've got a bit of car on our conservatory roof apparently.
"One of the neighbours has a car door on his roof. It's like a bomb went off."
Insp Richard Cawkwell said: "We've got some minor damage to local properties, but that can be mended. Nobody was injured and I'm really pleased about that.
"My staff will be in the area to delivering some reassuring messages."
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