One I got the hang of it, I was very pleased with the car physics. Powersliding successfully around a couple corners was thrilling!
A few things.. Touching a wall should bank the car off the wall at a proper angle instead of causing a bounce (and in this case, a total stop). This behavior frustrated me, as it felt a little cheap. I'm not saying it should be removed entirely, but a glancing blow with a wall should ricochet you away from it as you keep going.
I could not reproduce the wall glitch you talk about... and trust me, I tried.
This isn't very far away from being a fully playable game. With a little work and some additions, I think you'd have something really fun.