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Racing Games
Arcade-ish racing
Need for Speed: Most Wanted - PlayStation 3
It's really pretty, with great art direction and even though it's all one city, there's a bit of visual variety. There's also variety in the events, even though fittingly races are the focus (circuit races, even!). It would be best not being open world since it does nothing much with its open-worldness and it makes even painting your car harder. But at least the cops aren't all that annoying (still way too much). And the open world makes it so you can make your own shortcuts in the races. It's a very exciting game, with amazing sense of speed and exhilarating action.
Paulo Júnior's rating:

Split/Second - PlayStation 3
Very good looking and intense. The sense of speed is also really good. Also, it has offline multiplayer (and with AI cars also, to boot!). It's a bit visually repetitive but car handling is great and so is track design/layout. I also have to mention that all the time while playing I'm missing car takedowns and nitro, cause the destruction is a bit too scripted and the gameplay is a bit basic. 8 cars on a race might seem few, but it's enough. 

Paulo Júnior's rating:

Ridge Racer 7 - PlayStation 3
60fps 1080p, not open world, split screen, nitrous, great art-style, circuit races with 14 cars. Drifting is very fun in these games.
Motorstorm: Pacific Rift - PlayStation 3
Offline multiplayer with up to 4 people! Very intense and fast-feeling.
Xenon Racer
It's pretty and has good art design, it also features offline multiplayer. And it's not open world.
GRIP
Having come out of a Kickstarter campaign, it's a spiritual successor to the Rollcage series. It also has local multiplayer.
Top Gear 2 - Super famicom and SNES
The variety is real with this one. And the OST is awesome in these games! This second one added car damage.
Paulo Júnior's rating:

Lotus III: The Ultimate Challenge - PC Games
The predecessor to the Top Gear series. Amiga game. Ported to Sega Genesis as Lotus II Recs. It's just a shame it can't play both music and sound FX at the same time. Unlike TG, this has both point-to-point and circuit races. 

Auto Modellista - PlayStation 2
U.S. Tuned. A cell-shaded racing game! It's beautiful and visually varied. Split-screen too. Also, not open world!
Burnout Paradise (PS3) - PlayStation 3
Burnout in HD. This controls like a dream, the handling is heavenly. But map navigation is a bit confusing and everything's a bit hard to find, like races and cars and repair shops. At least there are no cops getting in the way.
Burnout 3: Takedown - PlayStation 2
Awesome sense of speed and really good system and mechanics. Also, it has offline multiplayer (with A.I. cars also on the match). It has too many mandatory non-racing events, though.
Paulo Júnior's rating:

Need for Speed: Carbon - PlayStation 2
Along with split-screen, this has good car customization and car tuning.
Horizon Chase Turbo
Inspired by classics like Top Gear, this supports up to 4 players. I don't dig the art-style all that much, it looks a bit much like a mobile game, but it seems fun.
Top Gear - Super famicom and SNES
They should do more games like these, focused on racing, you go from race to race without having to deal with an obnoxious open-world and its annoying cops, and the tracks are varied with snow, rain and night, and with lots of curves and nitro, with many opponent cars in one race, with offline multiplayer, with great graphics and gameplay systems. It has nice mechanics, such as nitro and the need to fuel the cars. The downside is it only runs in split-screen, even in single-player.
Need for Speed: Hot Pursuit 2 - PlayStation 2
Varied, beautiful roads, no-cops mode and not open world.
Gear.Club Unlimited - Nintendo Switch
F2p game that came from mobile. This one, apparently, is not freemium in its console version. And it has split-screen.
Asphalt 9: Legends - Mobile
A mobile game that was also ported to the Nintendo Switch. The downside is it being a free-to-play, freemium, game. Apparently this has split-screen.
Need for Speed III: Hot Pursuit - PC Games
Although it's graphically obsolete, it's still pretty, and at least mechanically is still worth it. And it still sets an example (like Top Gear) that others should follow of visual variety and focus on racing.
Bomberman Fantasy Race - PlayStation
Unique in the wacky racing genre. Very fun and underrated.
Paulo Júnior's rating:

Road Rash II - Sega Genesis and Mega Drive
Framerate is really poor in these games, so sense of speed is lacking. But the gameplay is nice and the career with its buying of motorcycles and motorcycle parts is novel. The theme is also interesting.
Paulo Júnior's rating:

Dangerous Driving
Made by ex-Criterion employees, this is a spiritual successor to the Burnout series.
Cars 2: The Video Game - Xbox 360
Even though this is a movie tie-in, it still has some interesting mechanics (it even has a jump button!) that make it unique and worthwhile and also 4-player split-screen.

Borderline
Not actually racing games
Trailblazers
A very unique racing made for coop/team races. And it has split-screen.
But since it's not who arrives first that wins, since it's a team game it's based on points, then it's almost not a racing game.
Distance - PlayStation 4
Neat. But without the racing against other cars component. It's a big missed opportunity.
Onrush - PlayStation 4
Barely a racing game, but very unique. The game systems are neat. Though lack of offline multiplayer in a game of this nature is a serious flaw.
Racing games I take an interest in. Usually they're current, because racing is one of the genres that most benefit from advancements in the technology of videogame consoles.
Things I look for in a racing game:
Local multiplayer;
Sense of speed;
Good car handling (smooth gameplay);
Intensity;
Beautiful graphics and good sounds;
Varied tracks and varied track conditions (rain, snow, night);
Lots of cars in a race;
Circuit races;
Nitro/turbo and/or fun drift mechanics;
Beautiful cars;
Track curves;
Shortcuts.
What I avoid in racing games:
Open world;
Mandatory non-racing events.
Things I look for in a racing game:
Local multiplayer;
Sense of speed;
Good car handling (smooth gameplay);
Intensity;
Beautiful graphics and good sounds;
Varied tracks and varied track conditions (rain, snow, night);
Lots of cars in a race;
Circuit races;
Nitro/turbo and/or fun drift mechanics;
Beautiful cars;
Track curves;
Shortcuts.
What I avoid in racing games:
Open world;
Mandatory non-racing events.