Original Image

Outline the car using the pen tool

Create a selection from the path you created using the pen tool

Copy and paste the isolated car to a new layer

Select and delete the wheels from the new layer... I used the clone stamp to start removing the Union Jack from the door.

Union Jack removed

I used the Warp tool to change the shape of the car

What the warp grid looks like in action

After the shape change

Next I duplicated the background image and I used the clone stamp to recreate the background behind the original larger car...

what it looks like at this point...

I decided to make the car a convertible... so I used the pen tool to cut a new path

I made a selection from my path and deleted the parts of the roof I wanted to remove. Don't forget to keep the seats you will want them later...

Next I change the color of the car using variations

Variations cont.

The car after color change in variations

Select your seat and copy it to a new layer... don't forget to delete it from the current layer after you copy it.

After I moved the seat on to a new layer I duplicated the layer to make a front seat... I then moved the seats roughly into position

I then wanted to create the inside of the car wall that is visible... I made an outline with the pen tool and selected it.

I then filled the selection with black

I decided that the black looked a little to plain and wanted to dress up the interior wall a bit. I decided to steal the louvers from the window shutter on the wall to use for some lines...

I copied and pasted a small section of the shutter from the original background layer to a new layer and then converted it to black and white with image/adjustments/black and white...

I then positioned the shutter piece in the general area I wanted it

Then I wanted to shape it to fit by scaling it and rotating it

Next I made a selection of the area I want to fill with the scaled shutter piece...The I inverted the selection and hit delete to clean up everything outside of that area on this layer.

Next I cleaned up the seat layers so just the seats were visible... In the photo I circled the area I removed

You can see in this step that the interior wall trim is now in place... I decided at this point that I wanted to shorten the car so I made a path of the area I wanted to remove from the car body

I deleted the section I wanted to remove... here you can see the two halves of the truncated car

Next I selected and copied the rear section of the car body to a new layer and deleted it from the layer it was previously on.

I then pushed the two halves together and used the warp tool to shape it to fit better

Next I decided I wanted the car to look more black and less dark green so I selected the car body and used selective color to pull out some yellow and add some magenta and black to the color of the car body

The image after these steps looks like this...

Next I decided I wanted to liven the car up and give it some more character... I decided to wrap the union jack around the hood of the car.

I selected and copied the union jack from the door of the original image.

I positioned the flag approx where i wanted it and shaped it to the hood using warp.

I then outlined the hood with the pen tool and selected the hood. I inversed the selection and removed the excess...

After the excess flag was removed from the hood... I changed the opacity settings for the layer and set the blend mode to Hard Light

Next I decided it might be cool to tie the wheels in to the hood design. I copied the Union Jack flag again and pasted it over the wheels

Next I used the spherical marquee to select the area of the wheel I wanted to fill with the flag.
Notice that I had the blend mode for this layer set to Linear Burn so I could see through the flag to the detail of the wheel... After I made my selection I inversed it and then deleted the excess flag.

The system is not allowing me to upload any additional steps... I finished off the car by adding some trim pieces I borrowed from the original image - I also shortened the distance between the triangular window and the windshield. I used warp, distort and shaped the trim pieces in place. I also used the clone stamp to create the background I lost when I shortened the car.