Oswestry Town Council's Finance and General Purposes committee voted against a study looking into changing the exit from the Central Car Park.
However, the committee did agree to look at a pay on exit scheme rather than the current pay and display system.
Councillor Mike Isherwood said he wanted to see the payment system modernised to offer visitors a range of methods instead of needing to find coins for the meter.
"Introducing pay-on-exit might well improve the problem of people using the space as a race track," he said.
"A facility that puts users in control of when they want to leave could benefit businesses in town by removing the pressure for people to rush back to their cars before their ticket runs out.
"However, local residents have long been concerned about the safety of the car park’s exit onto Roft Street, where several older people have suffered traumatic collisions or near-misses with vehicles pulling out as they try to cross.
"The proposal I made in June was to look at payment options but at the same time commission a detailed report into the functioning of the car park, focusing on the safety, design and location of the entrance and exit, in order to properly understand whether changes need to be made.
"Only by doing this can we avoid the risk of spending public money, investing in equipment and then realising later it is in the wrong place and we have only addressed part of the problem."
He added residents had been urging the council to properly address their concerns for years.