Blur might suit your requirements.
Plays in a very similar fashion to Mario Kart, but with slick semi-realistic visual style rather than cartoon. Fun single player, but made for multiplayer. Up to 4 players splitscreen. Can't remember how many online.
Released about 18 months ago, it dropped in price very quickly despite good reviews - can be found dirt cheap now.
ModNation Racers might suit you, so long as you mainly play multiplayer. It's a hoot (and the creation options are brilliant), but the singleplayer AI is still a bit on the vicious side.
I know its a ps2 game but the best game has to be Crash Team Racing!
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