A PRIZED $400,000 Lamborghini was left a mangled mess after a test drive through the city went horribly wrong.

The prospective buyer was behind the wheel of the white Lamborghini Gallardo when he lost control of the vehicle, hitting a barrier on the Macquarie St entry to the Cahill Expressway about 9am yesterday.

Lamborghini Sydney salesman Ian Watts, who was in the passenger seat at the time, had the nerve-racking job of calling his boss and telling him about the damage caused to the luxury vehicle.

The front of the car was a complete wreck, with the impact ripping the front right-hand wheel from its axle and the bonnet from its hinges.

Lamborghini Sydney managing director Andrew Smith said that, luckily, the car was insured.

He said the customer was not speeding at the time of the incident, and would not be required to pay any damages.

"It appears he panicked - these things happen," he said.

"It doesn't matter as long as no one was doing anything stupid or crazy, and no one was injured."

Mr Smith laughed as he said he had not yet received any offers from the man to buy the car.

Police are still investigating the incident and are speaking with witnesses.

Following the investigation, Rocks LAC duty officer Inspector Mihos said there was a chance the driver of the vehicle could be charged.

"Cars don't normally crash into barriers," Insp Mihos said.

"There are witnesses police are still to speak with and, pending those inquiries, we will determine what action is taken."