Residents on a quiet street in Korora, just north of Coffs Harbour, said they felt "shocked" and "terrified" after a driver crashed a car into a home on Coachmans Close.
A neighbour, who did not want to be named for privacy reasons, said she was making lunch with her fiance at about 12pm when they heard a "massive bang" and someone calling for help.
She said they went outside and saw the man stuck inside the vehicle.
"You don't expect to see a car upside down in someone's front yard, so we were all just in shock," she said.
The house was unattended at the time and neighbours assisted the driver from the vehicle.
"We thought the car could potentially explode, so it was a bit terrifying," the neighbour said.
"It's a pretty quiet street. It was just unbelievable."
Police said the 40-year-old driver fled the scene before emergency services arrived, but was arrested a short time later at the Banana Coast Caravan Park and taken to Coffs Harbour Hospital for mandatory testing.
There are no reports of any injuries and police are appealing to witnesses for further information.
