Limo Figure-Eight Challenge: For the second time in as many episodes, the drivers are required to reverse around a figure-eight course. This time however, they are given the much harder task of reversing a Lincoln Town Car limousine around the course. The driver and their nominator will sit in the driver's compartment, and the other five drivers will sit in the passenger section. Angelina volunteers to go first, apparently accepting before she begins the challenge that she's going to fail; she consequently doesn't make a serious effort, and hits 36 objects during her run. On top of that, she answers a phone call from her boyfriend in the middle of the test, something which Michael points out is ridiculous. This, combined with her repeated temper tantrums, causes the experts to suggest that she should perhaps be expelled from rehab and referred to a psychiatric clinic. Michael gets off to a shaky start due to only using his passenger-side mirror, knocking over 5 objects in the opening turn, but on being reminded to use all the mirrors on the car, he quickly gets it together and doesn't hit another object. Kevin has to be coached extensively by Lenny during his run, but quickly starts to makes full use of his mirrors, and much to the shock of everyone posts the best run on this challenge, hitting just two objects. Dale gets extensively advised by Andrew, Danny and Michael during her run, but is unable to apply their advice and ends up hitting 22 items. Despite his success in the previous episode, Shelby fares rather poorly in this challenge, failing to adequately use his mirrors and not taking into account the limo's front-end swing; he consequently hits 16 items, causing Andrew to tell him that reversing is obviously still a major issue for him. Sly continues to demonstrate a severe lack of spatial awareness on top of his slow reversing speed, which makes him so slow that the other nominators eventually leave the challenge area, then the other drivers, and then even Fred, leaving Sly to complete the course alone with Andrew. Sly ultimately hits 24 objects and takes over ten minutes longer than anyone else to complete the challenge, a performance which Andrew brands arguably even worse than Angelina's.
Camaro Challenge: Swerve and Avoid: In what Andrew points out is one of the most critical skills taught on the show, the drivers must avoid a foam car which will appear in one of two lanes, by swerving into the free lane. Each driver has two turns, and must carry out the manoeuvre at 70 km/h. This year, the timing to successfully execute the challenge is so tight that Andrew almost fails his demonstration, getting into the correct lane with just inches to spare. Kevin is first-up, and on his first attempt he hits the brake, partly going through the central barrier and then into the adjoining field. He makes the same mistake again on his second run, and fails. Shelby makes the same mistake on his initial run (and also drives too fast, at 100 km/h), but on his second attempt he correctly executes the manoeuvre and passes. Dale (who has to be reminded by Danny to take the course at 70 km/h, not 70 mph) chooses a lane before the car even appears during her first run, resulting in her turning into its lane and hitting it dead-on. On her second run she appears to pass the challenge, but on close inspection it turns out that she turned fractionally before the car was visible, meaning that she actually failed. Since Sly's run at the Canada's Worst Driver 7 Swerve and Avoid was considered to be the worst in the show's history for this particular challenge, he's told to carry out his first run at just 40 km/h, but not told that on that run, no car will appear. Much to the disbelief of Andrew, Fred and the experts, Sly doesn't brake or turn into a lane, and just carries on and smashes through the central barrier. On his second, full-speed run, Sly drives too fast (at around 90 km/h) and starts turning before the car even appears, crashing into it. This result leaves Andrew and Fred more convinced than ever that Sly is totally unfit to drive. As a result of his spin-out on the initial test, Yolanda is still refusing to accompany Michael in the high-speed challenges, and so Andrew takes her place; Yolanda's worries prove well-founded, and Michael continues to demonstrate the target fixation that caused that spin-out, crashing directly into the car on his first run. On his second run he makes the same mistake and corrects for it somewhat, but still clips the central barrier, leaving Michael visibly angry with himself. Angelina shows up to the challenge hung over again, but insists on doing it anyway; on her first run she drifts to one side and fails to react when the car appears, and crashes through the central barrier. She drifts to one side again on her second run, hitting some lane markers, then successfully gets into the right lane, but hits more lane markers and ends up in the field. Despite this, Angelina and Christine inexplicably try to claim that she passed the challenge, causing Andrew to lash out mostly at Christine, who he accuses of failing to make a serious effort to get Angelina to improve.
The Water-Tank Challenge: For this, one of the show's most notoriously tricky challenges, the drivers each have to drive at 40 km/h through an obstacle course with a 100 litre tank of water mounted on the car's roof. The car used is a Ford Taurus wagon, painted in a water-inspired livery. Any sharp acceleration or braking will result in the water draining from the tank onto the driver and their nominator. As usual, even Andrew doesn't avoid a soaking, losing 16 litres of water in all (he deliberately accelerates and stops sharply at the end as well). Sly is first-up, and his acceleration and braking are erratic throughout the challenge, resulting in him losing 65 litres. Dale doesn't fare much better and loses 55 litres, mostly through not properly using her mirrors. Michael keeps driving too fast, but still has what turns out to be the best run in this challenge, losing 50 litres (also making him the only drive beside Andrew to keep at least half the water in the tank). Kevin doesn't take the challenge seriously and keeps braking sharply, resulting in him losing 80 litres. Shelby knocks over a foam person in his run, then backs over it, and the shock of hitting the ground on the other side of the person fractures the tank, resulting in all 100 litres draining into the driver's compartment. Angelina doesn't participate in the challenge, instead getting a private therapy session from Shyamala. Despite the concerns of the experts that she shouldn't be in rehab, Angelina is able to talk Shyamala out of expelling her, and it's agreed that she may continue on the show for now.
The experts tell Dale that she actually failed her second run on the Swerve and Avoid, and Dale admits she truly believed she saw the foam car, which Shyamala feels could be a sign of a more serious overall problem. None of the drivers want to graduate, but the experts decide to draw up a shortlist anyway. Despite it being noted that Michael and Kevin did well in the limousine challenge (and Michael also had the best run in the Water-Tank Challenge), Cam persuades the other experts that the Swerve and Avoid is such an important skill that anyone who failed it should automatically be barred from graduating this episode - which, since Shelby was the only one to pass the challenge, makes him the only nominee by default.
In the end, Andrew tells Shelby that he has been the best performer until now, and that the experts could have seen a case for him graduating this episode. But since he said he didn't want to graduate, he'll stay in rehab, and so will everyone else.