The Wacky Racers speed along the rugged peninsula of Baja California to a sleepy little Mexican village, Enchilada-by-the-sea. When The Creepy Coupe's engine overheats, The Gruesome Twosome use storm power to cool it down. Rufus Ruffcut saws The Turbo Terrific in half.
Tired of being in last place, Dick Dastardly cheats his way to the front using twin helicopter blades on The Mean Machine. Then he and Muttley inflate a herd of cow-shaped balloons to block the road. However, this attracts a real bull which attacks Dastardly and pops the balloons, and the other drivers pass him again.
As the race continues across trackless sand dunes, Dastardly shifts the Double Zero into front-spin drive. He burrows through the dunes, leaving the other racers in the dust. When he gets stuck in a mudhole, a local offers to have his burro Tamale pull him out, for a small fee. Dastardly learns that all the cars will get stuck and will have to wait for Tamale to pull them out, so he offers to buy the burro so he can't pull anyone else. The man agrees, but to Dastardly's chagrin, the farmer owns many burros, all of which are trained to pull vehicles out of the mud. Penelope Pitstop hires one to rescue The Compact Pussycat. Red Max flies over the mud, while The Ant Hill Mob push The Bulletproof Bomb through it. The Gruesome Twosome use dragon power to dry up the mudhole and the rest pass through. Dastardly orders Tamale out of his car so he can continue, but the burro kicks it to pieces.
- The Bouldermobile
- The Bulletproof Bomb
- The Crimson Haybaler
- The Convert-a-Car
- The Creepy Coupe
- The Army Surplus Special
- The Compact Pussycat
- The Turbo Terrific
- The Arkansas Chug-a-Bug
- The Buzzwagon
- Dastardly and Muttley
- Fourteen cars pass the man in the sombrero, even though there are only eleven in the race.
- The Surplus Six, the Compact Pussycat, and the Crimson Haybaler each pass twice.
- This is the only classic Wacky Race that takes place outside the USA.