substeps, i believe (please someone correct me if i'm wrong - i often am!

), is how many little mini calculations the dynamics engine will do in between the actual frames it has to create. the higher you turn it, the better (more realistic?) the simulation should be. say, for example, on frame 50, your car hits the pole. if its moving fast enough, on frame 51 of the dynamics solve, the bent part of the mesh may be intersecting itself. if that happens - mesh intersecting - then it may produce what you're getting, cuz it confuses the solver. but, if you tell the computer to calculate 100 substeps between frame 50 and 51, it may catch the part where the mesh intersects itself, and do the simulation properly.
thats why it takes so much longer to calculate.
maybe try turning on "avoid self-intersecting". that's gonna double your render time too, though.