The fire was reported around 12:25 a.m. in a home's detached garage in the 300 block of Cureton Place, according to San Jose fire Capt. Reggie Williams.
The sole resident at home at the time was alerted to the fire after hearing what sounded like an explosion outside, Williams said.
The resident evacuated by the time fire crews arrived on the scene a short time later.
No injuries were reported.
The fire destroyed the garage and two cars parked in the driveway and spread to a next-door neighbor's detached garage, the fire captain said.
However, firefighters prevented the blaze from spreading to any homes and had the fire knocked down by 1 a.m., he said.
Williams said the fire is believed to be accidental and appears to have started from one of the cars in the driveway. The exact cause remains under investigation.