The Ferrari 488 Challenge Evo, reportedly worth £300K, was towed away following the crash in which Sanchez was travelling at 70mph around the Caracciola-Karussell corner.
Sanchez reportedly climbed out of the vehicle immediately and even helped collect the broken pieces as he escaped without injury.
Speaking to The Sun, a Brit holidaymaker, 58, witnessed the injury and stated:
“He was going way too fast on the turn, travelling up to 70mph. He slammed into the corner and the track immediately got red-flagged.
“It’s a banked corner that goes on more than 180 degrees and he clearly had put too much gas on and drove straight into the barrier.
“The front of his Ferrari was completely demolished and parts were sprayed all over the track. I think he just wanted to have a bit of fun for the week.”
The 28-year-old is currently on loan at Como from Chelsea and was not called up to the Spain national squad to face Czechia and England over the next week.
Earlier this year, Sanchez was slapped with three penalty points and fined £1,520 after being caught speeding in his Mercedes in Crawley, Surrey.