But in an update on Sunday afternoon, Scotland Yard said after being assessed the man had been released on police bail and sectioned under the Mental Health Act.
Police also confirmed that the incident was not being treated as terror related.
The damage to the gates was visible with large wooden planks erected across the area where the ornate gates were.
A Met Spokesman said: “At around 02.35hrs on Saturday, 9 March a car collided with the gates of Buckingham Palace.
“Armed officers arrested a man at the scene on suspicion of criminal damage. He was taken to hospital where following assessment he was sectioned under the Mental Health Act.
“He has been released on bail and enquiries continue. The matter is not being treated as terror-related.”