Depends if you want simulation or arcade,
arcade would be: need for speed, burnout paradise
sim : try iracing
my favorite are the dirt series games
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I'd give you some suggestions, but you're only looking for opinions. Everything I say is fact.
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Haha, that's more like it. On the budget side, you have Ignite which I was going to suggest but seems to be temporarily removed from the steam store. Then there's Skydrift which is also inexpensive from the galastore (has gone on sale for $1-ish). If you like classics and don't mind non-steam, there's the old Death Rally. You have people mentioning everything else already.
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Its been a long freaking time but I had fun with midnight club 2, which is apparently on steam
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GRID for real racing
F1 2012 for even more real racing
F1 Race Stars / Sonic & All Star Racing Transformed for Fun Kart Racing
Burnout Paradise / NfS Most Wanted (the old one) for Fun Racing
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If you can live with Non Steam (since it was removed some time back), look up Outrun 2006. Midnight Club 2 is great if you want Steam.
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This may sound a bit odd, but try Kororinpa on the Wii. Yes, it's a marble roller, but you race along the track against the clock and the marbles are all different. The grounds you are rolling on are different too, with distinctive sound and rumble effects on the controller. This game had the best experience in simulating rolling on wood, grated metal, cookies and everything. Great sense of speed and force too.
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If you want a good arcade racer go with both GRID games.
If you want simulation at it's best go with rFactor or Raceroom Racing Experience.
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I miss playing some racing games, so let me know your opinion.
EDIT: I played Split Second recently and I really enjoyed it
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