The car mode handles similarly to the previous game, in which players can earn boost by drifting around corners or performing tricks whilst in the air. The most obvious is that, at certain points in a race, vehicles can alternate between car, boat and plane modes.
Sonic & All-Stars Racing Transformed is a mascot-based racing game in which players race against each other using over 20 characters from various Sega franchises, such as Sonic the Hedgehog, Jet Set Radio and Space Channel 5, although it features many new mechanics and improvements from the last game. The cars can transform into various vehicles during the race to access otherwise inaccessible paths and traverse certain terrain An example of gameplay in Sonic & All-Stars Racing Transformed.