A toy launcher and dual powered toy vehicle apparatus where the toy launcher includes a base part to be held stationary during operation and a slidable part mounted to the base part, the slidable part being movable between first and second positions. Captured between the base and slidable parts is a spring. The expanding spring causes the toy vehicle to be propelled away from the launcher. At the same time, the rapid movement of the rack energizes the flywheel motor so that after the spring discharges the toy vehicle and a flywheel of the flywheel motor engages a supporting surface, the toy vehicle is moving in response to both the spring and the flywheel motor, two different power sources. The single action of pulling the rack appears to the user to cause compression and release of the spring, and the flywheel motor to be energized, essentially simultaneously.