NASCAR stands for National Association for Stock Car Auto Racing. A mechanic from Atlanta named Red Vogt came up with the acronim and the name. Red Vogt was the mechanic for Red Byron, NASCAR's first champion. He owned a garage on Hemphill avenue in Atlanta where moonshiners running shine from Dawsonville GA into Atlanta could get their cars "supped up" to outrun law enforcement. The owner of Red Byrons car was Raymond Parks a known moonshiner who still owns a liquor store on Northside drive in Atlanta. Parks, Byron and Vogt were NASCARs first 'team'. these men all met with Bill France in Daytona at Hotel on the beach. They all came together to form the organization that we all know as NASCAR today. If this interests you please find a book called DRIVING WITH THE DEVIL. It tells the early history of NASCAR and is an easy read.
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Racing was started because when prohibition was put into effect in the United States. People would drive really fast while carrying moonshine in their cars across the states with the police chasing them. That inspired people to take their cars and race against each other. They first raced on the beaches and dirt roads.
it was invented because laws were becoming more strict on Moonshine. Nascar was invented by the original Moonshiners
It was created because "outlaw" promoters were holding races and making off with purse money
A race car was invented by rich engineers with nothing better to do with their time.