However, Sinn Féin councillor Caoimhe McKnight confirmed that residents reported the car death driving around the Galliagh area and along a pedestrianised zone at Collon Lane.
"The car was then ignited in the Carnhill area at approximately 11am," she explained.
"As far as we are aware the car is not stolen and is therefore a run around car that has been sold cheaply to death drivers.
"I would urge anyone who is selling a car, especially if it is a cheap price, to take some responsibility for who they are selling to. They need to ask themselves if the person they are selling to can tax and insure it."
Cllr McKnight continued: "They also need to ensure the correct paper work is filled out and sent into the DVLA as responsibility for any damage caused could come back to them.
"The community in Galliagh and Carnhill repeatedly call for this anti-community behaviour to stop. These people are only destroying their own community and are only taking away from the good that is happening in the area.
"It is time these people stop holding their community to ransom before someone is serious hurt or worse."