Cool Bus: In Canada, one cannot legally drive a school bus with a regular G Class license (in Ontario, a school bus requires a B Class License)... unless the bus was not labelled as such and most of the seats were removed. In this challenge, after everyone is given lessons on parallel parking, the contestants must reverse the "Cool Bus" down a street littered with cars and rims before parallel parking the bus on the left side of a hill. Jennifer nearly breaks down in the challenge, but ends up finishing the challenge with a perfect run. Parallel parking is also not a problem for Thomas, nor is it one for Billie-Jean (who had learned to use her mirrors, and more amazingly had never parallel-parked before, having "flirted" her way out of parallel parking in her driving test), though both do hit obstacles. At the other end of the spectrum, Jason and Shelby had to have their courses modified so that all the obstacles were removed – Jason from frustration and wanting to quit rehabilitation (which would have made him the first contestant in any Worst Driver to quit, and as a result leave without his license), and Shelby (despite his dreams of driving a bus one day) from having moved only 10 feet after 30 minutes of driving the bus.
Swerve and Avoid: The contestants are in a car that lacks anti-lock brakes for a simple accident avoidance course – they must accelerate to 50 km/h before crossing a yellow line, where they must engage the brakes. When they reach a fork in the road, both of which have obstacles, one will move aside. The drivers must then recover from the skid and drive through their opening to safety. The drivers have up to five attempts to finish this task. Billie-Jean gets this on her first try, while developing a habit (from the previous episode) of wearing flats (her "driving shoes") instead of the stilettos she normally wears. Thomas, no stranger to swerving, also finishes on his first try. Marnie and Shelby take multiple tries to finish, as does Jason (a far cry from wanting to quit in the previous challenge), while Ed (due to his tunnel vision problem preventing him from seeing which exit had opened up) and Jennifer (out of frustration) do not finish at all.
Road Signs: As with previous years, head instructor Scott Marshall gives a simple quiz on their knowledge of road signs. Thomas answers all 13 signs correctly, while Jason only manages four (while still believing he got 11).
Canada's Worst Parking Lot: In the annual parking lot challenge, the seven contestants are given seven cars, and must park in whatever parking stalls are available. However, any moving violation (including hitting other cars, parking so that the car is not between the lines, or parking in no-parking zones) will result in the contestant penalized by being forced to drive out of the parking lot and take a penalty lap. As the challenge goes on, blocker cars (which include the Cool Bus) will also attempt to either serve as moving obstacles or park momentarily in one of the available stalls. As the challenge starts, Jason is the first to be penalized by inadvertently backing into Marnie out of the gate. Billie-Jean is the first to park (and is the only one to do so before any blockers appear), followed by Ed when Jason is forced to take a penalty lap when he hits a car while backing into a stall. When Ed is asked to take the role of a blocker, it allows Thomas to back into the stall he vacates, making him the third to park. Shelby (assisted by Billie-Jean and Nicola from outside the car) parks next, and he does so without taking penalty laps, while Jason finally finds a spot to parallel park. In the battle for the last spot, Marnie (having taken 9 penalty laps already, two from simultaneously parking in a no parking stall while one tire was over the line) is in the best position to take it, but is forced to take a penalty lap when she hits a barrel. Jennifer takes the spot, leaving Marnie out of luck.
At the end of the episode, the judges were favoring Thomas for his skill level being far above the rest (but believing that Thomas has still learned nothing besides the consequences of his street racing from Sgt. Woolley – in which life imprisonment is a distinct possibility), Billie-Jean for developing the habit of driving with flats instead of stilettos (and having dramatically improved results therein) and making use of mirrors, and Marnie for improvements in confidence (despite few challenges being completed). At the end, Andrew, with a racing helmet and a pair of scissors, gives Thomas a choice: take the racing helmet and graduate, or choose the scissors and be expelled (similar to Colin from Canada's Worst Driver 2). Thomas makes the right choice, but instead of leaving in his car (as is the norm for all graduates), he is taken to a race track, where he partakes (and wins) in his first race on a track. The experience from being at the track alone (let alone racing), according to him, is well worth the trip to Driver's Rehab, as he vows to never street race again.