I just typed a few words into a search engine and found the movie instantly. It's called Baffled! from year 1973. The plot sounds really strange though and now I think I'll have to watch it. If you want another weird car movie to watch, watch The Wraith with Charlie Sheen.
Extra Sensory Perception...I think either way some of the bad guy’s had the ability to cause mental illusions, one scene had it where an entire hall full of people thought that there was earthquake and everything was collapsing on itself but it wasn’t real...the person responsible for it though was gunned down for in front of everyone in the hall