I'm looking for help finding a specific late 80s/early 90s scifi horror movie. The things I remember is that it follows a group of either teens or early 20s people in some kind of town and dealing with some kind of infection/virus that turns one of their friends into a killing creature. One scene that is remembered is the group finds a person/friend of theirs hanging from a pod on a sign on the side of a hotel that you'd see around that time. There's also a scene where the friend turns into a creature and they try to reason with the turned, then the turned kills someone. I also remember the pods looked like a disgusting ball of meat.
It was on VHS so it could be older than when I remember seeing it in the mid-90s. I don't remember a whole lot about the monster's appearance, but I seem to remember a scene where a person hid in a car but the creature was already inside of the car and killed that person. I believe it was human-sized but I'm not sure if it was more human than alien (like Predator) or vice versa (like a xenomorph). I remember it took place over one night, it didn't have much involvement from the military or scientists, and it wasn't a big film in terms of budget.
Anyone looking to give me a hand? Thanks.