The music video for "Magic" is set at a pool party attended by an array of bizarre and comically deranged characters. It features Ocasek walking on the water of the swimming pool as the various characters gather to marvel at him. Towards the end of the video, some of the guests (perhaps in their own delusion) attempt to reach Ocasek by stepping onto the pool's surface believing that they too can walk on water, but only end up plunging into the pool. Ocasek remains standing (and dry) because, as the song title suggests, "it's magic".
The Cars shot "Magic" at the Hilton family house in Beverly Hills. Kathy Hilton rented the band her house. A Plexiglass platform sat under the surface of the water. On the first take, the platform collapsed. The platform had to be adjusted to Ric's weight. The house is also the setting for the movie Blind Date starring Bruce Willis & Kim Basinger.