The vehicle fire was reported at 8:29 a.m. in front of 218 University St.
The blaze had extended to a fence and was threatening the surrounding homes, according to the fire department.
Firefighters arrived to find large flames from the vehicle and fence, which created a large smoke plume. The homes that were threatened were evacuated while crews battled the blaze.
Firefighters were able to contain the fire to the vehicle and fence, and the residents were allowed to return to their homes.
The damage to the car and fence is estimated to be $5,000.
Firefighters from Cloverdale, Windsor and Geyserville also assisted at the scene of the blaze.
The cause of the fire is under investigation.