I don't really look to the DC for racers but my favorites are probably Hydro Thunder and Rush 2049. I used to love Vigilante 8 but upon further review it's really hampered by the lack of a stick to control the camera.
As much as I love Sega I find their first party racers to be really bland.
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F355 Challenge is one I have tried so hard to get into and can get nowhere ,I do prefer sims to arcade racers but it is just to difficult for me so if you have little patience it might be one to avoid
Other preferred titles that have certainly been mentioned:
F355 Challenge: Passione Rossa
Metropolis Street Racer
Tokyo Xtreme Racer - love the frame rate on this one, very arcadey feeling.
Tokyo Xtreme Racer
Sega Rally 2
Sega GT
San Francisco Rush 2049 - 35 years until we get to experience this one for real!
Hydro Thunder
Star Wars Episode I Racer
Last but certainly not least - Crazy Taxi and Crazy Taxi 2.