Guelph Police say a fire at a downtown car dealership is being treated as arson.

Friday night, just before midnight, an older-model car caught fire at Guelph Import Service on Essex Street.

The fire then spread to a second vehicle before ultimately making its way to the main business building, but the family living on the second floor of the structure was able to escape safely.

The first vehicle was burnt out while the second was damaged.

A damage estimate was not available.