Sony has since clarified to IGN how damage works in the game. "Damage occurs to cars right from the beginning," Sony said in a statement, "it is not "unlocked."  

Confusion seems to have stemmed from its differing implementation across the game's extensive garage, a point that Sony further clarified. "Standard models have minor deformation and scratches," said Sony, "Premium cars have greater visible level of damage, and Premium racing models have the highest level of damage."   

That's fuckin' stupid. 
 
Like, ... argh. I want to defend Polyphony, Sony and GT so bad but how the shit do you spend six years developing a game and only have a "selection" of cars be able to deform and actually look good?

I've been wondering this about Tony Hawk Ride. I've put 500 hundred hours into it, and I'm still waiting to unlock the good gameplay. Must be comin any day now...

That's already been debunked on GT-Planet as false.  Either they messed something up in that statement or it's mistaken. 
 
Even Kazu stated that a future patch will come that allows arcade mode to have the full damage that's seen at higher levels, and countless people on GT-Planet and NeoGAF have said level 20 is when the damage and physics start to change and become more realistic.   
 
EDIT:  Kazu's Twitter said that damage will progressively become more realistic every 5 levels after 20.

Either way they should've probably made it more clear in the game.

" That's already been debunked on GT-Planet as false.  Either they messed something up in that statement or it's mistaken.  Even Kazu stated that a future patch will come that allows arcade mode to have the full damage that's seen at higher levels, and countless people on GT-Planet and NeoGAF have said level 20 is when the damage and physics start to change and become more realistic.    EDIT:  Kazu's Twitter said that damage will progressively become more realistic every 5 levels after 20. "

" @Cyborgmatt: Kazu has stated clearly many times that the damage unlocks at higher levels, there have been videos since a week before launch of the damage difference of level 1 and level 20.    Sony got this one wrong, when both Kazu and NeoGAF are saying something completely different. "

It's gotta be unlocked because the damage at low levels is extremely minor.  It doesn't fit with user movies and pics of the higher amounts of damage.

" I've been wondering this about Tony Hawk Ride. I've put 500 hundred hours into it, and I'm still waiting to unlock the good gameplay. Must be comin any day now... "

KaosAngel is right. Sony is mistaken. I also have the game, and there is a clear difference in damage between level 1 and level 20. And it has nothing to do with the cars selected.

"

   This is level 40 damage, you CAN NOT even try to damage your car like this in the first 20 levels.  This has also been uploaded a week before launch on GT-Planet and Kazu said on his twitter that damage gets progressively worse as you play more.  Everyone on GT-Planet and NeoGAF have been stating for weeks before the game launched that damage starts to unlock once you get the extreme class, they've also had the game since early Nov. Go load up GT5 with a new save data and wreck your car like this at level 1.  You can't. "

 Sorry for my bad english,use the google translator... 

I did not think was seen by so 'many people and I thought it was understood that I was at level 40! 

I was at level 6 in arcade mode!    

Look at the dates on both videos. You'll realise who the moron is then tbh. 
 
Also I own and play GT5, do you even own it? 
 
Like I said, fanboys get upset. Don't believe everything you read on the internet.

" Also I own and play GT5, "

The plot thickens...

shit be trollin' yo!

Am I the only one who thinks it's stupid to lock out damage levels in the first place? Honestly, what was the reasoning behind that?

" The plot thickens... "

" @Enigma777:  The game seems full of really weird decisions and design features like this. "

" Am I the only one who thinks it's stupid to lock out damage levels in the first place? Honestly, what was the reasoning behind that? "

Well, I only assume because it very difficult not to crash, specially  when you don't know a track too well. So the keep the damage stuff till the point you are going to know most of the breaking points etc. and can afford to repair you cars. It seems like a sensible descion just a shame it can't but turned on/off for practice or arcade or something just to see it.

My experence is that damage is not unlocked as such, it is always there just your car becomes more susceptible to damage as you rank and there is a big jump at level 20 and at that point it becomes persistent. As I have damaged one of my cars (minor deformation on a standard car) at around level 12ish but it was gone after the race.

"My experence is that damage is not unlocked as such, it is always there just your car becomes more susceptible to damage as you rank and there is a big jump at level 20 and at that point it becomes persistent. As I have damaged one of my cars (minor deformation on a standard car) at around level 12ish but it was gone after the race.
"

Can you restart races in GT5? If you can then I don't understand why you have to unlock damage. I almost always restart until I have a clean race in most racing games.

" Can you restart races in GT5? If you can then I don't understand why you have to unlock damage. I almost always restart until I have a clean race in most racing games. "

" Can you restart races in GT5? If you can then I don't understand why you have to unlock damage. I almost always restart until I have a clean race in most racing games. "

I want a stunning conclusion, dammit!

why does damage have to be unlocked again?  kinda seems dumb, should be something passive that's there from the start.

" @OllyOxenFree: I do understand the people here wanting to justify their purchase and say it ain't so though. "

Let's just agree to disagree.  And agree on the fact that damage getting unlocked is fucking retarded.  Who thought that was a good idea?  Oh, they are not ready for damage.  Man fuck you.  You spent 80 billion dollars on this game and you tell me that you can only detail a few cars?  And that you recycle shit from the PS2? What the fuck man!

" Let's just agree to disagree.  And agree on the fact that damage getting unlocked is fucking retarded.  Who thought that was a good idea?  Oh, they are not ready for damage.  Man fuck you.  You spent 80 billion dollars on this game and you tell me that you can only detail a few cars?  And that you recycle shit from the PS2? What the fuck man! "

" That's already been debunked on GT-Planet as false. "

" @KaosAngel said:

" That's already been debunked on GT-Planet as false. "

 Because dumb fanboy sites > Official development studio statements "

The fact that there is even a debate about when damage unlocks is bullshit. This should have just been an option.

@KaosAngel said:

" That's already been debunked on GT-Planet as false. "

 Because dumb fanboy sites > Official development studio statements

only way to settle this is....
 
someone quit their job/school and get to level 20 immediately.  Pick the cheapest, crappiest "premium" car ingame and then wreck the sh*t out of it.  Please.

I'm still awaiting OP's retort. My body is ready.

I'm level 13 and have yet to see any real damage. If it's supposed to unlock slowly from level 5 to 20 as Kaos said, I'm not seeing it -_-

Maybe it is SUPPOSED to work like that but the damage system doesn't work that well in the game? 

"

I'm level 13 and have yet to see any real damage. If it's supposed to unlock slowly from level 5 to 20 as Kaos said, I'm not seeing it -_-

Maybe it is SUPPOSED to work like that but the damage system doesn't work that well in the game? 

"

I'm level 19 at the moment and playing right now. I'm quite interested to see whether or not the damage will be ramped up. I'll post a video (off screen unfortunately) of the differences if any are noticed.

I'd imagine this is Sony trying to spin things to be postitive. So while damage doesn't "Unlock" it does become meaningful.