select the sponge box, then in the collisions, turn on no selfcollide, so it doesnt explode in the next steps, then in the script menu, set the hinge constant to NaN, also you might see an axles tab in the sponge block, in the axles tab set the axles to "brake" then set the breaking threshold to whatever you like, and there you go, you have a breakable block, you could take a car image from google then turn it into sponge then apply the steps above to make it crashable.
put a black polygon behind the wheels to make it so the car doesnt seem empty, also do not damp the suspention too much or else the wheels will be solid in place.
oh, just realized i click pageup+end not only end, although i am not the one really to blame as for some reason the controls of my keyboard are scrl lock and end for the bullet compartment not page up page down