Mr Honan has vowed to carry on acting as a living advert
David Honan, 32, said shoppers in York were enjoying the act which sees him running around pedestrians in a Ferrari cape, holding a steering wheel.
But officers said they acted after he ran into the road causing two cars, including a police car, to brake hard.
Mr Honan, who was cautioned, said: "It's ridiculous. I have never been in trouble with the law before."
Mr Honan, who runs his own street theatre advertising company, had been working for a Formula 1 shop in the city when he was arrested.
He had been making car noises and zooming about in between shoppers when he saw a car inching around the corner.
Mr Honan told BBC News: "I trotted in front of one which was going at tortoise speed because it was going through the crowd. It was getting lots of laughs.
"I was making all the noises. Then I felt a hand on my shoulder and this police officer spun me around - he was so angry."
Mr Honan said he was arrested, taken away in a police car and locked up for two-and-a-half hours.
He said he accepted the caution rather than attempting to fight the charge in court.
A North Yorkshire Police spokesman confirmed that a man was arrested on Saturday for obstructing the highway.
"He ran out into the road causing two cars - one of them a police car - to slam on their brakes," he said.
"York has some terrific street performers and we enjoy them as much as anyone else but there is a line to be drawn when it comes to safety."
The Formula 1 shop that Mr Honan advertises told BBC News he did "a fantastic job".
Asked if he would carry on in the role, Mr Honan said: "If they ask I'll do it again. I'll just be checking my rear view mirror every five seconds."