My team (3 Pedal Mafia) has basically done it all in Lemons. [humblebrag] I'm more than 50 races deep. We have 4 IOEs, wins in every class including overall, and themes from epic to pretty lame. We've won every trophy but one. We even won the national championship (which is based on finishing well and entries)[/humblebrag]. We have been judges several times and have members who regularly work the races. It has all been a wonderful experience and I've met so many great people who continue to be great friends.
They stopped crushing cars about 10 years ago. If you show up with a really serious high $ race car that passes the pretty strict tech inspection (more strict than other series I've tried) you can still race, you just won't be able to win anything.
These days in Lemons, themes are more to show that you get the idea that there are no F1 scouts in the stands and that nobody there makes a living doing this, so there's no need to be SUPER SERIOUS!!!11!!11!!! about it all. Back in the day we went all out on our themes (and crazy cars) because it was fun. Once we had won everything but the class B and A wins, we got serious and got those two, after some really serious effort. Make no mistake, the pointy end of the field at a Lemons race is some serious E36 M3. It is full of excellent drivers who do this because it is fun and gets a ton of seat time (I've had 8 hours of seat time in 2 days, for example) and is full of great people. The cars at that level are usually very well developed over several years and can be seriously fast based on residual values and the long term development. There are very few $500 cars these days, but it is now more about the attitude that these are not IMSA cars, but there is no shortage of creative and interesting engineering.
If you don't care about winning, just make sure your car will pass tech (rules are online and pretty easy to follow) and pay your entry and show up. No matter what you'll be able to race. If you want to win, at least give the staff some idea that you are not a huge douchebag who is going to cause problems, then follow that up on track.
You will find all kinds in Lemons and you will always find someone to race no matter what you have. Some people really push for the overall, some people use this as an outlet for their creativity, and some people just want to spend some time with friend and driving on track. Everyone can find a home as long as you don't think you are the next Lewis Hamilton (even when you have the red mist).
Now, just for fun, here are some of our team's cars and themes:
"The Boat", which sort of started the "hat car" thing, and eventually went on to win class C and finish as high as 20th overall (of 90 that race):
Some IOE cars, the Rolls Royce (bought for $1k, seriously) and the Citroen S&M (that was $900):
Rolls, complete with monocle
S&M Complete with ball gag and spiked collar
Sometimes we get serious. This Civic won overall at Thompson this year by 1.3 seconds with 4 cars on the lead lap. It is usually in the top 5 fastest laps of the weekend (and has had the fastest lap overall too). It also has about 25k race miles on it since we got it. The boom on the roof has been there for 6 years and 5 different themes, this one is Godzilla.
This is our most successful car because it just keeps running, even though it is notably off the pace of the fastest cars, it usually places in the top 10 and has been as high as 3rd, it is an 86 Cressida:
Here's Black Betty, who just placed 3rd overall at NHMS in October (of 90). Buick 3800 powered, it is usually in the top 5 fastest laps of the weekend:
This is what makes it all worth it. The people are amazing. This was our winning driver roster, I'm on the roof, my wife is the hot blonde, Mental (from this forum) is in the center, and Jeff is on the right.