The man - in his 30s - was arrested after a red VW Golf ended up on its side on Falsgrave Road on Saturday evening.
Police are continuing to investigate the incident and are appealing for anyone who witnessed it or the events surround it, has dash-cam footage or CCTV which covers the area to get in touch.
There were called shortly after 7.30pm on Saturday to reports of a crash.
The VW Golf was being driven away from Scarborough Town Centre along Falsgrave Road and was reported to have hit several parked cars.
Anyone who can help the police should call 101, quoting reference 12200077509.
A message from the Editor:
Thank you for reading this story on our website. While I have your attention, I also have an important request to make of you.
In order for us to continue to provide high quality and trusted local news on this free-to-read site, I am asking you to also please purchase a copy of our newspaper.
Our journalists are highly trained and our content is independently regulated by IPSO to some of the most rigorous standards in the world. But being your eyes and ears comes at a price. So we need your support more than ever to buy our newspapers during this crisis.
With the coronavirus lockdown having a major impact on many of our local valued advertisers - and consequently the advertising that we receive - we are more reliant than ever on you helping us to provide you with news and information by buying a copy of our newspaper.