For 1998 Ray would continue to drive Knapp's #97 Dallara-Oldsmobile Aurora with sponsorship from Mercury Outboards and Mercury Marine for the opening rounds of the season. However, during practice for the Indianapolis 500 Knapp's team was without a sponsor. Ray would manage to qualify second between AJ Foyt Enterprises teammates Billy Boat and Kenny Brack and would gain race day sponsorship from Justice Brothers, Inc., True Value, The Nashville Network, and Ray's hometown track Texas Motor Speedway. In the race, Ray led for 18 laps before retiring on lap 167 due to a gearbox failure. Ray would follow up his 500 performance with a 2nd-place finish at the True Value 500 at Texas Motor Speedway where Ray acquired sponsorship from AT&amp;T but Knapp's team skipped races due to a lack of sponsorship. Ray then drove a two-race stint for AJ Foyt Enterprises in the #11 Conseco Dallara-Oldsmobile Aurora as a replacement to the injured Billy Boat (who beat Ray to the pole position at Indianapolis and the win at Texas) at the Pep Boys 400K at Dover Downs International Speedway where Ray would set the fastest lap before getting taken out in a crash and the VisionAire 500K at Lowe's Motor Speedway where Ray retired with gearbox failure. Knapp then reopened his team for the final three races of the season with sponsorship from Genoa Racing and Best Access Systems but would retire from each race.