What happens in terms of energy when a moving car hits a parked car, causing the parked car to move?

The moving car transfers kinetic energy to the parked car.
Kinetic energy in the moving car disappears.
Kinetic energy in the parked car is created.
The parked car transfers kinetic energy to the moving car.

Additionally, some energy is also dissipated as sound, heat, and deformation of both cars in the form of potential energy. So, overall, there is a transfer and transformation of energy from kinetic to potential and thermal energies in this collision event.