The Melbourne man was putting his one-of-a-kind car to the test in the 2005 Grand Prix Rally.

It is the first time the rally has ventured to western Victoria, with Clunes and Ballarat to become pit stops for the next two years.

The rally kicked off in Echuca on Saturday, with competitors travelling to Bendigo.

Competitors stayed in Ballarat overnight and will participate in the Show n Shine at Victoria Park today.

Vehicles will take to the city streets at 8.30am for the first auto test of the day, before heading to Warrnambool.

The rally will conclude in Melbourne on Wednesday.

Mr Henry, who has competed in the rally since its inception 18 years ago, said the new course was providing welcome challenges.

Course clerk and former rally champion Bob Watson said Clunes was the perfect pitstop for the event.

"It's got a great atmosphere," he said.

"We'll be back next year."

Mr Watson said most of the competitors were driving late model cars, with Porsches the most prevalent.

"There's Porsches, Holden and Ford V8s, Mustangs and Subarus," he said.

Hepburn Shire Mayor and Clunes resident Michael Cheshire said the town was well suited to host car events.

Cars will be on display at Ballarat's Victoria Park from 7.30am.