Police in the Dutch town of Bloemendaal have cautioned the two brothers, reports said.
"A police patrol this morning saw a car with the doors open and two young boys stood next to it," in west of Amsterdam, police spokeswoman Lenny Beijerbergen said.
The seven-year-old boy told police last week that he had driven the car around one-and-a-half kilometres, hit a metal post on the pavement and come to a standstill, Beijerbergen said.
According to Australia's AAP news agency, a policeman tweeted a photo of the crash scene, saying the car belonged to the boys' grandmother.
"At least I had my seat belt on! And my brother was in the child's seat," the seven-year-old driver said when police turned up, Dutch news agency ANP reported.
"The boys were taken to the police station, given a talking to and made aware of what they've done. Then they were taken home. Thankfully they were both unhurt," Beijerbergen said.
She said there was considerable damage to the car and the pavement.
"This is really quite remarkable. I've never seen anything like it. Seven is very young," Beijerbergen said.
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