I added the chackpoint system and the laptime so...
(edit: oh yes - now you can change the camera view with tab)

... here's first playable demo (click image to download, zip 30MB - if available)
controls: wasd/cursor keys


ingameshot:

Dont you think a toon style with sharp textures could look better or are your scenes just build up by placeholders for now?

textures/models are not final

Great racing game for start - Could only get 16sec fastest lap

Few things:
1 -- > Music is really sucks for such game...
2 -- > Will you make car bounce of the obstacle if it was hit? Cause only reducing speed doesn't look good.
3 -- > Camera (the 2 one) is still sucks... but if you move it downwards a bit will be better...
4 -- > Backwards movement bug (example: when I turn to left and move backward car must turn to the left same if I turn to the right).
5 -- > Why when I move backwards speedometer's arrow move under zero?!
6 -- > One tip about camera, why don't you make ability to move camera closer and farther for fixed steps (as in many rally games)?
7 -- > I think if you add more drift (when turning with high speed) it will make game more dynamic.
In all other ways, looks good.
Get inspired:
Half Life Rally Mod

1: change it (musicbox)
2: sort of this
3: I like the 1st most
4: check
5: - check
6: maybe
7: car physics can be set up in external file/there will be a set of different setups for different cars

1 --> Sure user can change music himself (great ability), but the one that game already uses needs to fit game
2 --> I hope will be add.
3 --> But what is users don't?! Move second camera down a bit, that will looks much better.
4 --> Great.
5 --> Great.
6 --> I hope will be add.
7 --> Player will be able to set up each cars physics from file?! Please say that I'm wrong
I hope you liked video from Rally Mod, you can download it from "MODDB.COM"
It is arcade too, but still I enjoyed playing it...

I think I'll continue my idea of the game.
Anyhow thank you for your ideas 3run.

i get an error for the terrain material and then the road is green/red and the rest of the terrain blue.

i think the driving physics is a bit weird and needs some work. but i am looking forward to future versions.

"i get an error for the terrain material and then the road is green/red and the rest of the terrain blue."

had the same problem (windows7).
After installing DirectX 9.0c it works fine.