This, except file a report now before shit gets real. You may have to forthcoming with the burnout part of the story but better to be 100% truthful to the police. Who knows, as someone else mentioned, alot of people start thinking straight when the cops actually show up. Worst case you have something on file if you have to plant one in a motherfucka.
Maybe this is his hillbilly version of talking to people like Old Greg and he thinks he's trolling you.