ACT Policing said the car would be impounded for three months after the incident in Cooyong Street.

The seizure comes as police urge the public to follow road rules during the Summernats car festival at Exhibition Park.

“Police, along with the ACT community, will not tolerate burnouts, especially in a public place like Cooyong Street," Summernats Operational Commander Sergeant Rod Anderson said.

"It is extremely dangerous. Not only is there a real risk of seriously injuring someone or yourself, police will catch you and you will lose your vehicle for three months.”

Station Sergeant Anderson said police are maintaining a high-profile police presence during the four-day event, including in the surrounding suburbs and across the ACT.

“We will be providing around-the-clock patrols, monitoring drink-driving, burnouts, speeding and other anti-social behaviour,” he said.

“Police will be supporting event security staff when evictions are necessary, and will have a high-police presence at hotspots such as Lonsdale Street in Braddon, amongst other spots across the ACT."

An estimated 20,000 people lined Northbourne Avenue on Thursday for the Summernats City Cruise, with police praising the crowd's behaviour.