Firefighters were called to Deans Road at around 9am today after a Vauxhall Safira caught alight, blocking off one lane.
The road was closed for more than an hour in the direction of Wednesfield Road while the fire crew from Fallings Park dealt with the blaze.
Kerry Edwards, 29, said she was taking her five-year-old daughter to school when smoke started to pour from the dashboard area of the car.
She quickly pulled over and got out of the car along with her daughter and her mother, who was also a passenger.
Within seconds the car, which she had bought only 13 days earlier, was engulfed in flames.
"The car is completely destroyed but I'm just happy we all got out before the fire took hold," said Mrs Edwards, from Eastfields.
"I took the car in to have the heater repaired last week and that seems to be where the fire started."
Traffic diversions were put in place causing long tailbacks on Wednesfield Road and the A454 Willenhall Road.
The road re-opened shortly after 10am.