OK I started this game on the hardest difficulty and intended to tune it down until it felt good. I am now playing on all the easiest settings and still getting last place everytime! do I have to start a new game or something?

Have you changed the AI difficulty? i missed that as an option at first? 
 
By this i mean the AI difficulty not the driver aids. I was winning by a mile even with aids off and then figured out it was because  i had the AI set to easy

" @Devil240Z: In the beginning races, even on Easy without assists except braking line, I constantly came last or close to it. For me, it was simply a matter of practice. It took me about a day to get used to the driving model. I don't know why really, but suddenly I just got better. "

So did they make it so you suck in the beginning no matter what? So as you level up your "character" gets better.

remember find you own driving stile and practice. and i suggest to train your driving on Monaco it's brutal and have all you need. when i was playing on easy i notice AI seams to like slow speed corners and get all confused with fast corners like in turkey and Montreal. So in monaco easy ai actually little harder to beat (i was using a lotus and i was only able to Q 17 and finished10th) but Montreal i take P1 in Q and finished in P1...in lotus!
PS oh lol and im in lotus team and leading championship ahh if it's only be true in real life!! go lotus!!!

Same here problem here - how do I snatch those settings from my teammate?