The best racing experience you can have in a game is the F355 Challenge deluxe arcade cabinet. Encapsulated adjustable seat, surround sound, 3 screen panoramic, shifter, etc. There's one in the lobby of a local movie theater, I've only played it a couple times because I usually go at night and by the time I get out the machines are turned off. Plus I have it on DC, so it's cheaper.
I'd say Sega Rally 2 (arcade style powersliding) or F355 (hardcore sim) are probably the best car racing games currently available.