Picking up sometime after the Trans-France Race, Pete Stancheck has inherited Herbie from his uncle, Jim Douglas, and travels to Puerto Vallarta, Mexico with his friend Davy "D.J."

Unable to pay the holding fee due to Paco taking their wallets, the pair quickly leave in Herbie to find him.

The trio chase Paco after realizing the film showing the location of the gold is in the stolen wallet, but Pete and DJ catch him first.

En route, they meet an anthropology student named Melissa and her extravagant, eccentric aunt Louise, who is trying to find a husband for her niece.

Captain Blythe has his men drop Herbie into the ocean as punishment, while Pete, DJ, Melissa and Aunt Louise are ordered off at the next port.

As a rainstorm hits, the men retrieve a large gold disc from the ruins, planning to melt it down so they can hire equipment to get the rest.

Herbie and the group travel to the next major town (using bananas as camouflage) where Blythe and Louise go to get help while the others take the disc to the local university, where they are overpowered by the men.

After that, Pete, Davy, Aunt Louise, and Melissa have a toast for Herbie to win the Brazil Grand Prêmio, with Paco giving a thumbs up.

After Paco rescues Herbie who resurfaced after being dropped into the sea by Captain Blythe, "I Found a New Friend" plays as the two drive through the open road of Panama.

[3][4] Most film critics remarked that the series felt tired, and had run its course, with Leonard Maltin commenting that there was "one amusing scene where the VW turns matador; otherwise, strictly scrap metal."