It is based on a VW Bug. That should be good enough for Lemons.
How would it differ from the guy who starts with a rusted old Bug, a pile of parts and a sawzall?
The judges would probably like it better if you put some kind of body on it... anything from a "speed buggy" kit to a Gazelle, or something you hand-"fabricated" yourself out of old street signs and drywall screws.
You have to remember that even a fast Formula V isn't all that fast, and getting one that's been sitting in a barn for 25+ years to be reliable for a full race on a $500 budget won't be easy.
Lemons South 2008 - Fail, Lemons South Spring 2009 - Fail, Lemons Detroit(ish) 2008 - Fail, Lemons South Fall 2009 - Fail, Lamest Day 2009 - Fail, Miami 2010 (Chump) - 2nd!, Sebring 2010 (Chump) - Fail, Cuba 2010 - Crew Chief, Roebling 2011 (Chump) - 8th!, Sebring 2011(Chump) - 19th!