Lots of car I seen have a old-school paint theme to look like a popular car back in the day
I don't see how you could have any penalties for something that is a 100% true $500 car cleared bank check don't lie and or notarized bill of sale.
I'm going to suggest you spend some time reviewing this forum, and the Rules. I lurked for a year and a half before registering for my first post.
The below two Rules, and the multitude of threads regarding them, will be informative.
There is also the "spirit of Lemons" to consider.
The line at the bottom of Rule 4.1.2 is key in most of the threads speculating about the "last real purchase":
"4.1.2 Lame-Ass Rationalizations About Parts: Same deal. “Free” parts, parts given to you by your buddies, parts left lying around the shop…that crap doesn’t impress us. It’s worth whatever the last real guy paid in the last real purchase. Don’t think you’re clever."
You may have to show, for example, (and I'm just speculating here) an advertised listing of the goods sold for the $500 you have a receipt that says you paid, which gave others the opportunity to purchase at the same time as you.
Other considerations or benefits associated with a transaction can have a value set for them, which can be calculated as part of the purchase price of an item, even if not on a receipt; you may want to check with a lawyer on that, but that's my understanding.
And saving the best for last, you should be aware of this Rule:
"1.4 Claiming Race: At the end of the competition, the Organizers—and nobody else, you lazy, better-car-wantin’ bastids—may elect to purchase any vehicle from its owner(s) for $500. In 80 races and counting, we’ve claimed cars precisely twice. Don’t piss us off so much that we raise that to three."
It's clear the organizers don't want to claim another vehicle, but that is part of the deal of entering.
As mentioned above, you shouldn't have a problem entering it or racing.
But the B.S. inspection is subjective. In one of your previous posts you had indicated "C" as if you feel the car should be in class "C" in Lemons. And it may be. But there also may be penalty laps assigned according to perceived value, so a class 'win' may be challenging.
So if you get "A" class with some 'bazillion' laps your first race, please remember the last sentence of Rule 1.4, and go have a ton of fun.
In Lemons, the I.O.E is the grand prize. Everything else is second place at best (my opinion).