It is no big secret that Bugbear Entertainment are putting a lot of work into Next Car Game's damage model, and they have now released a trailer showcasing the work that they have put in.
They have had a lot of questions asking "is it soft-body deformation?" rather than rigid bodies and pre-set damage models, and they have said that yes, it is. They first used the system in Ridge Racer Unbounded and it has been extensively updated and refined since. There will be no pre-set damage models and as few as they can get away with.
This basically means that hitting a car with something or vice versa will leave the correct sized shaped dent where it took the impact. They want to have as much fun as possible with the damage model and they have said that the crashes are going to look spectacular.
Check out the YouTube video above as we watch cars get crushed by industry grade metal pressers, and come out a lot worse for ware.