In this article, we prove the local-in-time existence of regular solutions to dissipative Aw–Rascle system with the offset equal to gradient of some increasing and regular function of density. It is a mixed degenerate parabolic-hyperbolic hydrodynamic model, and we extend the techniques previously developed for compressible Navier–Stokes equations to show the well-posedness of the system in the
$L_2-L_2$ setting. We also discuss relevant existence results for offset involving singular or non-local functions of density.