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if you ask me there wont be any visual damage at all, only mechanical. I just can't see gt's pretty cars suddenly dented and falling apart.
I dont even want to see those cars falling apart... most of the time i turn of damage anyway, because it is just part falling off and scratches on the car which just makes them look ugly anyway.
I hope it's just mechanical, and let us pray there will be dynamic weather effects! that means having to come in to the pit for different tires, which adds tactics to the game.