Exactly this. You can lose races, and there is no noticeable impact to the Lily story. As of what's been released thus far, it just affects how much cash you have for the app to upgrade your car. Currently you can buy one thing from the upgrade shop, but based on the story more will come.Nah, it's story first kind of VN. There are quite a few sex scenes but they are spread out in the story.
The racing, while important, isn't done all that often. Typically comes with a mini game where you have to upshift inside certain rpm ranges and timed choices throughout each race.
Will losing races impact the main story? I doubt it every will as that means there'd be variations where Lily may not survive. And I don't think the author wants to go there... but that's just my guess.
The bulk of the raised money does not come from Jake. The money comes from: 1) Allie's cheque; and 2) the cash winnings that his best friend (blanking on the name) got from his race betting, to pay for the treatment.