A drug dealer found dead in a torched Jeep beside a suburban sports oval in Melbourne's east had a long knife protruding from his neck, a court has been told.

Christopher Lavery, 31, is standing trial for the murder of his mate, 24-year- old James Russouw, at Burwood East Reserve in March 2008.

According to forensic evidence, Mr Russouw's car was doused in petrol and set on fire after his murder.

Several residents who lived near the reserve reported hearing a sound like a car backfiring.

Fire crews extinguished the blaze, subsequently finding Mr Russouw's body.

The Supreme Court of Victoria on Monday was told both Lavery and Mr Russouw were involved in selling large quantities of cannabis.

The trial is expected to last for several weeks and hear from a number of witnesses including experts and friends of the two men.

AAP