The weight limit for the finished car is 5.00 ounces.
The raw block of wood (plus the wheels and nails) is usually just a bit more than 5 ounces, so if any wood is removed to make the classic wedge shape, you have to add metal weights to get the weight back up to the maximum allowable. Some less dense blocks of wood might actually start off at less than 5 ounces.
When my son and I made his “just a block of wood” Spongebob Squarepants car, we sawed off a quarter-inch of wood off the back to get the weight right at 5.00 ounces (once the decals and paint were added).
Finally, I do think air resistance comes into play, but the most important factor are the wheels, IMHO. We always shaved off the burrs off of the nails, smoothed the wheels, made sure the wheels were on straight, and used lots of powdered graphite. These simple measures alone helped him get a speed trophy every year for his age group, even the square Spongebob car.
At the higher end of competition, however, the shape of the car, weight distribution, and air resistance come into play. My son’s cars were usually fast enough to land up in the top third or so, but were never in the same league as the very fastest cars.
The cars fast enough to win overall and go on to the District and Council races were sleek, highly polished, aerodynamic, long wheelbase, perfectly balanced and weighted cars. I was happy if my son could win a few races and hopefully get a trophy in his own age group.
BTW, the way they ran the races was very clever. There were three lanes on the track. Each car ran in three heats, one heat on each of the lanes (to account for any speed variation in the lanes). The times for each heat were electronically determined to the thousandth of a second, and the times for each of the three heats were added together. The car with the lowest overall time won.
For the first heat, the cars were all randomly raced together. For all of the subsequent heats, the cars were matched up so that cars with similar speeds would be raced together. This made it so that even boys with slow cars had the opportunity to maybe win a heat or two.
Unfortunately, some boys didn’t really understand this, and thought that because they won their last two heats that they were going to get a trophy, which might not necessarily be the case if they had one of the slower cars.
Oh well, that’s part of life, too. Everyone at least got a participation patch.