A lot of the games mentioned here wer really good, especially Stunts 👍, Test Drive I, Test Drive III (also awesome at the time).
One that lasted quite a while for me,
Indianapolis 500, made in 89 by Papyrus. Complex setups (more than GT4 in some areas), nice physics, challenging competition, replays and most importantly cool crashes with damage!

I think It was 320x240 in 256 colors with crappy adlib audio (or even worse, headache-inducing PC speaker, on school computers).
The grandfather of serious racing sims:
On the arcade, the oldies I really liked were Outrun and Super Monaco GP:
And finally on the NES it was Pole Position, Off Road and Al Unser Jr. turbo racing.