A dramatic car fire in Mount Waverley this morning has been caught on camera.

The car is completely engulfed by flames when a loud explosion can be heard.

A witness told 3AW he heard the first bangs about 7am, standing in a park off Heany Street, Mount Waverley.

The MFB confirmed the car was dumped and then set alight.

In the footage below, the explosion can be heard about 23 seconds in.

So this happened this morning in Mount Waverley @3AW693 pic.twitter.com/4oPg5qqABA

— J.I. (@BluesLaGoons) March 12, 2019

3AW has contacted Victoria Police for comment.