Salim Mehajer, the scandal-prone former deputy mayor of Auburn, has told a Sydney court he did not stage a car crash to avoid appearing in court and the case has led to the "collapse" of his life around him.

The 31-year-old property developer and former councillor has been in jail since January 24 after he was charged with perverting the course of justice and conspiring to cheat or defraud over an allegedly staged car crash on October 16.

Salim Mehajer outside Burwood Local Court before his arrest in January. Credit:AAP

The crash occurred shortly before Mehajer was due to appear in court to face a trial for assaulting a taxi driver outside The Star casino. He pleaded guilty to the assault last week and was given a three-year good behaviour bond.

A bearded Mehajer, dressed in prison greens and carrying prayer beads, appeared via audiovisual link in Burwood Local Court on Wednesday to make a third application for bail.