Each car in the Fantasy League has a rating. This rating should be used as a guide to find out which cars are faster than others. All cars start with a 1200 rating. The rating goes up with a win, down with a loss.
Ratings are calculated using the Elo Rating System, which adjusts ratings based on opponent. It rewards lesser rated cars more when they beat a higher rated car, and thus rewards better cars less when they defeat lower rated cars. The Elo System is used in other one-on-one competitions, like chess.
The rating is calculated after EACH RACE, so within a single tournament a car's rating may change up to four times depending how far in the tournament it gets. Every car in a tournament will get at least one rating adjustment.
The rating is a somewhat sliding scale that adjusts based on the number of wins and races a car has, accounting for a car's "experience" on the track compared to a car that is brand new. This same system was used in the first racing season and produced great match-ups. However, starting with the second season, tournament seeding is not based on rating and is purely random, along with player entries.