Sure, you may take a time hit, but so long as you can catch up you're good to go. Go ahead, use your car as a weapon. Don't be surprised when your points tally ends up in the negative digits though. Obviously, that's not a sound way to advance. That's right - it's all about Kudos.
Kudos are points earned for doing flashy e-brake turns and being a general badass.
Say you're required to overtake eight cars in order to advance a level. Meet your tough new goal and watch your points soar. Meet the new goal while showing off a few powerslides and you'll be unstoppable. Knowing that you lost a race because you screwed up, and not because your car inexplicably flipped into the air or didn't react to your steering, is something of a rare gaming experience. They look like actual locations rather than cartoony backdrops with repeating buildings.