Just keep on racing, and over time move on to manual gears and get rid of that traction control. You'll be forced to drive more smoothly and you'll be put in more direct control of your car. Those two things should lead to you being a better driver. There's no exact science to it, but you will get better with time.
As for the X challenge, just keep on trying. If you know the racing line for the tracks, you will be fine. The hardest part is getting used to the car itself. Once you can manage two clean laps (which is really difficult in that thing) then you're pretty much there.
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