Originally Posted by titus 
if I am not mistaken, the car was behind the wooden wall in the mining colony. Not sure about it, I know the alien dwarf was there.
Actually it was in Jarkendar, back in the canyon behind the cliffs that one of the 'dungeons' was built into. You had to use snapperweed or a speed potion and get lined up just right to run up the side of the cliff, supposedly. I never managed.