A Walthamstow man has been arrested on suspicion of dangerous driving after a boy and a pensioner were injured.
Police began to follow white Mercedes, claiming it was being driven dangerously in Kings Head Hill, Chingford, at around 8pm on July 17.
In Winchester Road the car collided with a Rover and was then driven away from the scene.
Two of the passengers inside the Rover, an 11-year-old boy and a 65-year-old woman, suffered minor injuries.
The 66-year-old male driver of the car was not injured but the Rover suffered what is described as extensive damage.
Police closed Winchester Road and Wadham Road for two hours.
The 24-year-old Mercedes driver continued through Evanston Avenue before he eventually stopped in Swanage Road.
He is then said to have attempted to flee by foot, but officers found him in the front garden of a house in the road.
He was subsequently arrested on suspicion of aggravated vehicle taking and dangerous driving and bailed until September 12.
A passenger inside the Mercedes made off from the scene and is still at large.