I've just been having a look at the demo of X Motor Racing, an indie racing game that prides itself on its realistic car physics and damage modeling. As if to prove that the physics are realistic you can even press the '3' key to bring up a physics overlay, which explains the stresses and forces on each of the tires, as well as adding big pink arrows to them to illustrate something or other about grip and/or wheel-physics.
Irritatingly the demo doesn't feature all the physics options or any of the damage modeling - which seems to me to be one of the crucial things you'd want to show off in a demo. Nevertheless it's an reasonable entertaining car game, and the digital download is DRM free, so you can burn it to disc and install it on your reinstalled PCs and laptops on demand. How refreshing.