The pileup was reported shortly after 11:30 p.m., according to the Los Angeles County Fire Department.
Firefighters extinguished the flames emanating from the one vehicle that caught fire. There were no reports of serious injuries.
A Fire Department spokesperson said early reports that a driver or passenger was trapped inside one of the vehicles were unfounded.
Two cars were racing before the crash, and four parked cars were damaged, according to the South Gate Police Department.
One man was arrested on suspicion of DUI, police said. His name was not released.