When we went thru this, I made the decision that (unlike all the rest of the kids) my son would actually make the car himself. I did the research with him, and I made my own car, because I really like to, but he did his own everything except actually using the power tools until he was into second or third grade.
First year he lucked into a pretty good car, but the judges screwed up the scoring and had a rematch and they had messed up the track so cars didn't stay on, so they randomly awarded first to some kid who had connections, instead of my son. (Welcome to the real world.) It was pretty devastating for him, so the next year he made a car just for fun, decorating it with Pikachu which was just becoming popular, and he got a lot of attention for his really cool design.
Third year he did another really interesting car, and got a reputation for interesting designs. Also, it was completely obvious that his cars were COMPLETELY made by him, which a lot of people found interesting.
After that, he studied on the web for fast carmaking and actually won first place his last year in cub scouts. And he did it on his own.
"Competitive" is a relative term. We turned it away from a "my dad's engineering shop can make a cooler, faster car than your dad's engineering shop" competition into a "what's the best I can do on my own" competition. When he won that trophy all by himself it was the sweetest thing on earth, after what he had been through.
You live or die by the wheels (round) and the nails (smooth and straight). Tracks vary; if there is any way to practice on the actual track and then make one for yourself that is exactly the same, it helps. Memorize the rules, especially for track clearance and for local variances. You don't want to lose on a technicality or hang up on the starting mechanism.