A roadside spectator filmed the incident on Gun Hill during the stage from Stoke-on-Trent to Nottingham.
Cavendish is in a line of riders and clips the front of a gold-coloured Ford Focus hatchback parked on the right-hand side of the road.
Many riders pass the car before Cavendish glances off the side of the vehicle and falls to the ground. He subsequently retired from the race.
A statement issued by his Etixx-QuickStep team said that the Manxman was taken to Alexandra Hospital in Stockport for medical examination.
X-rays confirmed that Cavendish did not suffer any fractures or dislocation. After a few days rest it is expected for him to get back to training ahead of the 2015 UCI Road World Championships in Richmond, USA.
Cavendish was named as being part of Great Britain’s team for the road race in Richmond.
It wasn’t all bad news for Etixx-QuickStep during Friday’s stage: the Belgian team’s Matteo Trentin took the victory, the third win for the team in the 2015 race.