**Concept: The question tests on the application of counting.**

**Solution:**

We have a total of 8 children and 3 cars, with a maximum of 3 in a car.

The only ways to do this 3 in 1 car, 3 in the next and 2 in the last.

Three children can be chosen for 1 car in 8C3 = 56 ways. From the remaining 5, 3 children can be chosen in 5C3 = 10 ways and the last 2 children will go into the last car in 1 way.

The cars can be chosen in 3! / 2! = 3 ways

The total number of ways = 56 * 10 * 3 = 1680 ways**Option E**