The stolen Skoda sedan hit speeds up to 180 km/h while chasing a Toyota sedan along Derrimut Road at Hoppers Crossing in Melbourne's southwest in the early hours of Friday.
The car with seven youths inside tried a manoeuvre to spin out the Toyota in what police suspect was an attempted carjacking.
It lost control, hit the rear of a Ford sedan and Ford Ranger ute, before rolling into a property's front yard.
A 15-year-old boy was ejected and died at the scene, while a 16-year-old girl who was a front-seat passenger suffered broken legs.
A third occupant was arrested at scene but several others ran, including one caught near Werribee Plaza.
A 14-year-old boy later presented with family to Werribee's Mercy Hospital and was taken into custody.
The five captured or dead teens, aged between 14 and 17, were not on bail, Detective Inspector Craig McEvoy said.
He said one or two occupants of the car, stolen about 24 hours earlier during an aggravated burglary in Maidstone, remained at large.Â
"To run from the scene whilst you've got a mate who is lying on the ground dying, it's a coward's act," Insp McEvoy told reporters.
"This is not a PlayStation game where you can hit reset and start again."
A witness, who did not want to be named, heard a "massive bang" from inside his house and came out to discover the boy on the bitumen.
They supported a woman in shock and described the fleeing youths as gutless.
"I hope they wake up ... actions have consequences," he said.
Before the crash, the Toyota's three occupants felt intimidated and threatened outside Tarneit Central shopping centre.
They escaped unharmed, while the sole occupants of both Fords suffered minor injuries.
A sword was found outside the stolen car, along with a large amount of alcohol.
The road reopened to traffic on Friday afternoon after detectives inspected the crumpled wreckage.
Det Insp McEvoy said it was amazing only one teen died, given the "unfathomable and completely excessive" speeds the car reached.
"We could have had five, six, seven fatals here," he said.
Victorian minister Nick Staikos said his heart sank when he learned of the crash.
"I know Victorians have had enough of it and it can have tragic consequences," he said.
Youth crime is back in the spotlight after the fatal stabbing of good Samaritan Aidan Becker at Mernda train station, in Melbourne's northeast, on March 6.
Opposition Leader Jess Wilson said the state Labor government was failing to keep Victorians safe.
Laws came into effect in Victoria on March 6 allowing children as young as 14 to be tried in adult courts for more types of violent crime, including carjackings, aggravated burglaries and machete attacks.
20°C