All great racing simulators have damage. Gran Turismo never had real damage modeling, but in Gran Turismo 5, there will be damage modeling. Not any regular damage modeling, sweet damage modeling. An interesting feature will be that out of the 1,000 cars that will be included in GT5, 150 of them will have special damage. This means that the interior of those 150 cars will get damaged when you crash the car. The rest of the cars in the game only have exterior damage.
In this video by GamerSyde, a Subaru Impreza STI rally car is smashed to bits.[youtube=