Police were called at 1.30am today, Friday to reports that a car had gone into a wall at Pottery Gardens, Lancaster.
A silver Ford Focus had smashed into the wall and the occupants fled the scene.
Two teenagers were arrested at a house nearby.
A 17-year-old boy from Lancaster, the driver of the vehicle, was arrested on suspicion of drink driving and aggravated vehicle taking.
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A 16-year-old boy was arrested on suspicion of aggravated vehicle taking.
Both teenagers are currently in custody, said police.
No-one was believed to have been injured in the smash.