Riding the Rails: The first real challenge of the season tests the drivers' knowledge of their wheel position, by requiring them to drive a Suzuki Sidekick across a short set of rails, and then making the same journey in reverse. If the driver falls off at any point, they will fail.
Cody and Amrinder both pass with ease, further cementing Andrew's opinion that they're both competent drivers who just need an attitude adjustment. Mike also passes without any real difficulty. Daniella fails by falling off near the end of her forward run. Diana comes close to passing, but goes too fast in her reverse run and drifts off the rails near the end.
Krystal gets across fine going forwards despite forgetting to take the parking brake off, only to mistakenly assume that all she needs to do is hit the reverse to end up exactly where she started, causing her to fall off the rails and fail almost immediately.
Lou narrowly passes the forward section, but has difficulty with her mirrors and quickly fails while reversing. Tyler is easily the worst performer in the challenge, as he falls off the rails within seconds of starting.
Head-to-Head Reversing: This challenge, which is being run in its Canada's Worst Driver 10 incarnation, pairs off two drivers, who each have to reverse down a lane, turn around in a circular area, and then reverse back up the lane they started in. Daniella and Lou are the first to attempt the challenge, and the former repeatedly over-steers while the latter under-steers, meaning that they cause a lot of damage even before getting to the turning area. Lou proves so slow that Daniella is able to take four additional runs, and while she still fails the challenge for not passing on her first attempt, she's nonetheless given credit for a clean run on her final go.
Diana and Tyler go second, and Diana initially insists on wearing a backpack during her run, which Andrew forces her to remove. Both drivers are able to get to the turning area without hitting anything, only to then get overly competitive and treat it as an actual race, causing them both to narrowly fail (with one hit and three hits respectively) as they rush to be the first to finish.
Before Cody and Mike take the third run, Andrew brings them together for a talk, so that Mike can let Cody know first-hand what the consequences for a person injured by a dangerous driver can be, assuming they're lucky enough to survive at all. Christian also reveals that she was injured almost as severely as Mike, requiring reconstructive surgery. Cody is moved to tears by this, and vows that he will never again be such a reckless driver. Unfortunately, he then gets overly confident while reversing and never once looks out of the back window, causing him to fail and earning a reprimand from Andrew. Mike also fails to pass, but doesn't do too badly, with just four low-speed hits. Amrinder and Krystal are the final pair to face off, and Amrinder fails by driving too quickly, resulting in two hits, but Krystal, who for once is forced to drive without distractions, passes despite also driving a little too fast for Steven's comfort.
Mustang Challenge: The Shoulder-Check Challenge: This annual challenge tests the speed control and shoulder-checking ability of each driver, by requiring them to drive the Mustang up a straight at 70 km/h, check over both shoulders to see whether a green sign is placed to their left or right, and then turn into the corresponding lane at the end of the straight. Mike correctly shoulder-checks, but fails by over-steering and hitting the lane markers when getting into the right lane. Cody, Amrinder and Diana all pass, though the former two drive a little over the advised speed. Lou narrowly fails by clipping the lane divider as she turns, but is given credit for understanding the lesson and otherwise carrying out the challenge correctly.
Krystal refuses Andrew's offer to be driven through the course beforehand (something every other driver accepted) and then back-talks him when he tells her to put her phone away. She subsequently takes her run far too fast (at 100 km/h), can't carry out the shoulder-check in time and then crashes through the lane divider, badly damaging the Mustang's front bumper. Things then go from bad to worse when Andrew confronts her over her performance, only for her to reply with more back-talk and then claim that the challenge has no relevance to real-life. Andrew forces her to take a second run, in which she still drives a little too fast and only checks over one shoulder, and then a third run, which she finally succeeds at.
Daniella (who refused to believe that there was any such thing as a blind spot until Andrew demonstrated it for her) gets very anxious even when Andrew drives her through the course, and then freezes up and stops the car when she actually attempts the challenge.
She's allowed to take a second run and turn into the lane of her choosing, but she panics, closes her eyes and then hits the dividing barrier, causing the already-damaged front bumper to break away entirely. Tyler, who also didn't understand what a blind spot was, commits the common error of turning his wheel when he turned his head, causing him to fail by hitting the lane markers.
When meeting with the experts, Krystal complains that Andrew is being unduly harsh on her, but the experts are unsympathetic and say that so far, she's proved his criticisms to be correct. Despite this, she believes that she deserves to graduate, and that her only problem as a driver was not knowing how to reverse, much to the panel's disbelief. Cody also tells the panel what he's learned in the episode, and that he now fully understands what's at stake if he continues to drive recklessly.
While Andrew feels that Cody is just telling the panel what they want to hear, the experts feel that he's learned enough to graduate. Cody therefore becomes the season's first graduate, and before leaving is given a Mike-shaped air freshener to remind him of what could happen if he lapses back into his speeding habits.