Issues.....because I'm that guy
Liability for the car owner considering a $500 car isn't likely to be particularly safe and multiple people driving it.
Liability for the club for the same reason.
$500 car actually costs $560 after taxes. Then whoever wins it will also have to pay 12% GST and PST to assume ownership.
Who's responsible for the tow bill and disposal when the motor blows up or whatever?
Who's going to pay to insure the car at say $90/mo for 5 months?
I doubt even 10 people will sign up - only about 5 people really have a hope. For most people it would just be throwing away $100
Counting first run pretty much eliminates anyone involved in course setup since that would be considered an unfair advantage.
Cheap junk tires are too noisy. Decent tires cost money (even used)
I'm sure I can come up with more if I thought about it for more than 5 minutes...... sorry