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Car Battler Joe is a car battling game. The game involves using cars to fight opponents in action-styled battles, with role-playing game game mechanics. Player starts with one car, but as he gathers different parts, he can build others and store them at his garage. There are four types of vehicles: light buggy, medium car, heavy truck and hovercraft, each with its pros and cons. Each car can mount from two to four different weapons, including cannons, machine guns, and close-ranged weapons. All weapons are divided in three groups, according to damage type: missile, flame and beam. Player can earn money by taking randomly generated missions. These missions generally involve delivering goods, destroying enemy, gathering lost items and duels. All missions have strict time limits and player is getting extra money for completing them faster than expected. Story missions have no time limit, but they are longer and harder.

The player takes the role of 16 year-old Joe, who on his birthday receives a powerful and rare car and a robot, which helps to control that vehicle. Joe then embarks on the journey to find his lost father, a car-battler of great renown, and to become a car-battler himself.