TOCA Race Driver 3 follows on from the ideas started in Race Driver 2. The game attempts to include as many different forms of four-wheeled racing in one game, as well as injecting each with a high degree of realism.

The game has over 70 licensed cars and 80 real tracks, as well as 35 different disciplines of racing.

There are two main gameplay modes. The World Tour mode has the player starting a racing career and, with the help of a Scottish manager, attempting to gain renown and acceptance into more famous racing events. There are 3D rendered cutscenes shown from the player's point-of-view, which move the story along and, while not as detailed as its predecessor, gives a good idea of the back scenes of a professional racer's life aside from just the racing. This mode includes mixtures from all the racing disciplines.

The second mode allows the player to choose one discipline and play a career focused on that choice. This mode has no back-story and longer, more realistic races.

TOCA Race Driver 3 provides two different driving models, Simulation and Pro-Simulation. The latter is recommended for gamers with analog steering wheels only. Simulation is intended for gamers without wheels, or who want an easier experience. This mode is also noticeably easier than the Simulation mode from TOCA Race Driver 2.