The Baofengs are not legal, but that doesn't stop anyone. They put out too much power for the GMRS and FRS frequencies, and you need a license to operate in the other bands. You need to be very very careful with these radios. They are powerful enough that even if the frequency you choose isn't used by emergency crews in your immediate area, it can be picked up by a repeater and sent to an area that does. I believe that happened at a west coast race and they had to stop the race until they found the team responsible.
Technically you need a license to use GRMS radios like the popular Midland and Motorola radios too. No one ever gets it, but you're supposed to have it. It's something like $80 through the FCC site.
If you're trying to do communication on the cheap, just get a set of midlands, then make/buy a car harness and helmet kits, and experiment at your track to see where you have signal and where you don't. Worst case just train your team to only try to talk on one section of the track where you know it works.
Also note that setting privacy codes doesn't stop others from hearing you, or separate you from the overall channel, it just filters out anyone not on that code. So if someone is on 5-10, someone else is on 5-15, and someone is on just 5 with no code, the last person can hear all three, but everyone will interfere with everyone else whenever they try to broadcast.
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