Need for Speed Underground 2 runs well, slightly faster/smoother than the first one (on real GBA hardware too).
VRally 3 is excellent, best looking racer I think and runs really well.
Tokyo Extreme Racing (think that's the title) is also decent enough.
The GT Advance games are also pretty good.
If you can stand the blocky graphics Sega Rally is ok, looks awful though so be prepared!
I could never get a working Street Racing Syndicate rom but from what I remember it was ok too.
I also quite liked Ultimate Drift which was decent enough for the odd race.
You might Also wanna try Super Skidmarks (Megadrive/Genesis), have no idea how it runs but it's a port of one of my favourite Amiga games.