A four-wheel-drive was set alight outside a property on Hagens Track, Newborough about 2.40am on Friday.
Police said a passer-by phoned emergency services after noticing the car fully engulfed in flames.
The Mitsubishi Challenger was destroyed during the blaze which is being treated as suspicious.
A nearby shrubbery was also burnt during the fire which caused a small section of bush to be destroyed.
Anyone with information is asked to phone Latrobe Crime Investigation Unit on 5131 5000 or Crime Stoppers on 1800 333 000.
Lock your cars
Police are warning drivers to lock their cars after 15 vehicles were broken into overnight on Thursday.
Minor items and loose change was stolen during the spree which took place in the west end of Traralgon.
Traralgon Sergeant Jeff Graham said most of the cars targeted were left unlocked.
Anyone with information is asked to phone Traralgon Police Station on 5172 2700 or Crime Stoppers on 1800 333 000.