How do you erase all the save data or restart the game?
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I think the restart game selection is at the start menu. If not, try pressing the start or the select button during the game menu (where you can choose which race to go to), that might let you restart the game.
You can quit the game, and go to your PSP's Saved Data Utility. Scroll down until you find your Cars data save, press triangle and select delete. This erases the game's data and completely resets it. It also works for any game.
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