Select now the Pen Tool (P) to draw a line along the car's body, as you may see below:



Choose again the Smudge Tool (R) to blur out the line to give the effect of the smoke as it is represented below:



Find on this layer the Blending Options>Outer Glow by making a mouse click on the layer we work with on the layers' panel, setting the next indicated parameters:



Pass on the next parameters:



We need to get a stream of flame:



On the next three new layers we need to paint the next demonstrated lines:



Blur them out as to get some real flame's tongues:



Follow the next Blending Options parameters:





These parameters must be applied for the two layers demonstrated next picture:



Finished!

View full size here.