Could be a dark side of the setting. "LOD0 only"
In the original game, all "Z-cockpit" objects are not used by LOD1 to 4.( Lods 1, 2 and 3 have only 24 objects when lod0 has 28 objects)
This strange behavior also happens when you have an additional object which should not be. (Eg: 29 objects for lod0)
When you crash this car, the additional object "is always dancing" with the damaged part of the car....
Using only LOD0, If the game should display LOD1 or lower, the additional object is the "z_cockpit_insert", so....
It could also explain why each time you got close, the body disappeared... It's because the game display the LOD0, then all is right...