Interesting discussion in Racer on Raceconomics by Gil de Ferran, former IndyCar champ. His views apply to amateur racing as well as pro racing.
http://www.racer.com...an-raceconomics
Some highlights: "Frankly, a lot of the commentary I've seen shows a lack of understanding of how the economics of motorsports really work."
"So when someone says a series is low cost, you should ask yourself, which cost is low? The cost of winning, or the cost of just being on the starting grid?"
. . .
"If you're a full-on competitive animal (and if you're serious about succeeding in racing, you should be), what do you do if you get beaten on a consistent basis?
Well, you either go home, or you invest. Invest in speed: find a better driver, better engineers, mechanics, parts; more testing and development. You have to do something. You can't be accepting of defeat.
"How much do you invest? As much as you have, or can afford, until you get the desired outcome. As in life, not all investments yield the desired return, but you have to try!"
. . .
"In fact, think about how the cost of going racing has evolved. Through the years, people got better and better, learned better ways of doing things, understood better where to find performance, be it driver or car. Mostly, that learning has led to more expense.
"But you can't unlearn what you've learned, and you can't forget how to go faster. If the money supply is there, you'll invest in applying all the lessons you know. You'll try to be efficient and effective in your investment, but you'll still invest all you can afford."