The man ''was laughing the whole time''.
His couch-surfing journey ended near Otago Boys' High School in Arthur St, about 5.30pm.
''I think the sparks might have been what stopped them.''
The motorist said he later saw the trio load the coach on to the roof of the vehicle.
The man was hanging out the window, holding on to the couch, as the vehicle went down Arthur St and into Elm Row.
Acting Senior Sergeant Jared Kirk, of Dunedin, who viewed the video on odt.co.nz, said: ''It never ceases to amaze me the lunacy of some individuals who have failed to engage the brain.
''The risks there are obvious to the people involved ... and other motorists and pedestrians. I mean, what would happen if someone had to slam on the brakes in an emergency?''
Police relied on the public's help to report such driving behaviour, he said.
Penalties could range from infringement notices being issued to possible court appearances.