When she described the "spectacular" car-crushing in Parliament later in the day, Mrs Collins wore a wide grin.
The Nissan was believed to have belonged to Paraparaumu teenager Daniel Briant.
His car was seized after three driving offences - driving while suspended, wheel-spinning and dangerous driving - and he was banned from driving for 21 months.
The wheel-spinning took place on State Highway One near Paraparaumu, and he was arrested when he tried to change his tyres at a nearby carpark.
Mr Briant and his family declined to comment yesterday.
He placed a photograph of the car doing a wheel-spin on his Facebook page, and friends commented "Long Live the Laurel".
Mr Briant wrote that the police had stripped the car including expensive new tyres, rims, the motor and hubcaps. He spoke of the "good memories" in the Nissan and said he could "build another one easy enough".
The seized car was bought by the wreckers, who were then entitled to sell the car's parts. Police reported that three hours after receiving his third strike, Briant performed another burnout and crashed into a fence. He was awaiting sentence for the incident.
Asked whether car-crushing could be considered a successful deterrent when the driver immediately committed another offence, Ms Tolley said: "There will always be extreme cases."
She said there was no evidence that the harsh measure would create a bigger gap between police and drivers, and said street racing-related offences had fallen by 30 per cent since the law's introduction.
Acting Superintendent Rob Morgan said it could not be automatically assumed that the threat of car crushing had contributed to the decline in street racing.
But he said it was one of several tools police had used to make roads safer.
The dubious honour of the first car-crushing nearly went to Milton teenager Karn Forrest in April, but he switched his 1982 Toyota Corolla DX for another car and police halted the crushing.
Another 116 drivers are on two strikes for driving offences.