According to GamersMint, user Asane from GTPlanet and GameTrailers spotted a build of GT5 at a Best Buy store, and took pics of the damage model, which appears to be dynamic in the way a car wrecks. Too bad they’re off-screen and a bit blurry.

It looks very good, and much more realistic than the damage model on a lot of other games. No idea if running a car head on at 200MPH would, essentially, kill you and crush your entire car, though.

UPDATE:
You can check out some other shots here.