I'm working on a racing game with realistic racing car physics that's all custom written, however I still use off the shelf physics engines for everything except for the tyres/sprints/aerodynamics
The rigid body simulation and collision detection frameworks from existing engines are still extremely handy, meaning I just have to add some extra forces into the sim and it all works out of the box.
Do you mind if I briefly hijack this thread to ask what sort of collision resolution methods work well for racing games? Particularly given you need incredibly smooth movement over terrain...