The driver, a man in his 20s, suffered serious injuries and was taken to Hawke's Bay Hospital.
A Hawke's Bay District Health Board spokeswoman said the man is in a stable condition.
Local resident Kristy Hall says she was watching TV when she was disturbed by a car "racing past" her house next to the railway line.
"I immediately thought that he was going way too fast to stop and jumped up out of bed," she said. "Before my feet hit the floor, there was a half second skid and then the bang."
Hall said police were swiftly on the scene.
"My initial thoughts were filled with fear that they would be pulling a body from that car," she said.
"I believe he didn't have headlights on and obviously is not familiar with the area as he had no warning that this is a dead-end and from the reaction time, it was far too late once he realised."
Two fire trucks from Hastings, as well as the Serious Crash Unit, attended the scene.
Police are investigating the circumstances of the crash.
One person also sustained minor injuries after a three-vehicle crash in Waiohiki, Hastings, on Saturday afternoon.
