I've only gotten to play Daytona USA in an arcade a few times, but it was really fun. I can't really list a favorite, I've played so many. I'm just going to list off some games I can think of that I really like, in no specific order:
- Need for Speed Underground Series
- Test Drive 5
- Grand Turismo Series (kind of got out of it after GT4 though)
- Trackmania
- Mario Kart with friends is pretty fun
- Midnight Club series
- Crash Team Racing
- Dirt 2
- Ridge Racer series
- ATV Offroad Fury
- Kinetica
- FlatOut series
- Stuntman
- Grid Series
- Midtown Madness & Motocross Madness series
- Dirt Track Racing series
- Twisted Metal series (does that count? lol)
- Jet Moto
That's all I can really think of off the top of my head. I played a lot of racing games with my Dad, and there's a lot I'm probably forgetting, like some Nascar games on the PS2 I can't remember the name of. Even just racing games that were probably bad but were fun because of playing with friends.
I also borrowed a Logitech wheel recently for about a month (forget the name, but it's the really nice one with the 3 pedals and shifter) and played games like Live for Speed and iRacing. It was soo much fun. I really want to put together a wheel and seat setup for racing in, especially once the Oculus Rift comes out.