What is the point of the pit stop in Daytona USA?

According to this FAQ the pits are mostly useless. The car does take some damage when it collides or gets flipped which affects the handling, but in most game modes the time lost pitting outweighs any benefit.

The exceptions are Grand Prix and Endurance mode where damage and tyre degradation make pitting worthwhile.

On the beginner level if you take “pit road, on the last lap”. You’ll simply drive through and bypass the animation. Shaves a few seconds off your time. Especially; if you take the corner just right when getting back on the track. 5–6 seconds and if your in second place, you’ll get a few extra seconds playing 2-player.