In 2003 Colin McRae started designing a rally car named the McRae R4 which he debuted at the Goodwood Festival of Speed in 2007. It was designed to be an economic alternate to other rally cars, with an additional focus on safety.

Built by DJM Race Preparation, the McRae R4's chassis is based on a steel safety cage with carbon panelling front and rear, and a steel-covered cockpit area. Suspension consists of twin wishbones with Proflex dampers. The process of designing the car was assisted by Codemasters, who created a 3D model of the car based on initial sketches done by DJM Motorsport. The bodywork of the car is loosely based on a first-generation Ford Ka bodyshell, deemed to be the optimal choice in terms of size, shape and weight.

The engine is a naturally aspirated, 4-cylinder, 2.5-litre Millington Diamond Engine producing 350 BHP. Transmission is via a six-speed gearbox, manual or semi-automatic, and by mechanical front and rear differentials with the option of mechanical or active central differential. The car can be produced in either 2 or 4 wheel drive formats

So far only one prototype exists and is in the possession of the McRae family. Rumour has it that Petter Solberg was to own the first production model that, unfortunately, never came to be, with the death of McRae in a flying accident in September 2007 the project was shelved.