Ahh ok, well, you could try applying different distortion meshes to the sprites.
Another method is to create a sprite for each stage of deformation and then add a custom physics mask for them. Then use the render-to-texture plugin to make the cars have different textures while still using the same base sprite.
Using that method, the damages will still be predefined, the very oppposite of what I want.
The mesh distortion feature might be what i'm looking for, although not the load feature related to it.
Anyone who's played carmageddon 2 will know what I'm talking about.