Jim Douglas has pulled his famouse racing car off the track - where is he now? teaching a driving school- with major help from Herbie! Herbie and Jim Get involved in stopping a bank robbery and rescuing the beautiful teller Susan from her hostage situation - as gratitude she signs her daughter up for driving lessons. Jim falls head over heals for Susan only to find out she is temporarily engaged to a Mr. Randy Bigelow.

Susan leaves Bigelow at the alter only to land Jim into a hostile situation as Randy Bigelow decides Jim needs to be eliminated from the picture - his first idea is to get the bank to loan Jim money to save his driving school- his plan: force him out of buisness.

Jim and Susan plan to tie the knot- he assures her that his racing days are over - but after another race car driver taunts him into doing one more race- susan has second thoughts!

Randy bigelow - still persistent to stop Jim and Susans wedding hires a private detective to scoop up somthing awful on Jim that will change Susans mind! When it fails he places a stink bomb inside Herbie - in hopes it will ruin the ceremony.