Colin McRae Rally 04 is set several years after the events of Colin McRae Rally , with Colin no longer driving for Ford and Nicky Grist not being his co-driver. The player now chooses their own vehicle to compete in the rally driving world, which has also undergone changes. Colin McRae Rally 04 features improved graphics compared to its predecessors, but the biggest improvement is in the handling of the cars, based on real-world physics. This new engine has four pivot points, allowing each wheel to interact independently of the others.
The game offers four championship modes: 2WD , 4WD , Group B , and Expert . The 2WD mode is suitable for beginners, while the 4WD mode presents an intermediate challenge. Group B features cars from the '80s that were banned in 1986 due to their unrestricted nature. The Expert mode requires players who have completed the 4WD advanced mode, with a cockpit view and high damage settings.
The game includes eight national rallies, such as USA, Australia, UK, Finland, Japan, and Greece, as well as over 20 cars to unlock, including the Team Ford Transit van.