Just after 1:30 Saturday morning, officers responded to a car fire at Primos Auto Sales on Main and 22nd.
Investigators determined this was an arson case and after reviewing surveillance footage, officers recognized 47-year-old Charles Moreschini and noticed he was walking near the dealership.
Police found him, and Moreschini confessed that he started the fire.
The flames completely destroyed the car and damaged a part of the dealership building.
Moreschini was booked into the Merced County Jail on Arson charges.