Magic house used to get even with bully punk teenagers

There was a movie in the mid to late 80’s involving a group of bullies who tormented a kid and the kid’s family was into magic and eventually led the bullies to a house where they used magic and illusions to freak out the bullies and get even. There was one scene where the bullies were chasing the kid in their van and ran him off the road and the cops thought they were drag racing and arrested (or just harassed) the innocent kid.

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