For me, no damage pretty much means no sale for me for a simulation type game. It makes a big difference. If you have no damage and your racing an F1 car you can go bump into people and you don't have to pay the penalty of having your front spoiler destroyed.
I had a F1 game for the N64, and the game made you suffer if you abused the car. You could lose tires, spoilers, shocks, and you could just flat out total the vehicle and lose the race. Of course, if you could get back to the pit everything was magically fixed in 10 seconds, which I did abuse by cutting corners and then flying into pit lane and fixing everything on my schedule stop lap 
anyways, onyx answered this thread already so whatever.








