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For a demo derby wouldn't a big motor make more sense, i mean you are trying to get a big car with no traction anyway moving with its bumper in a tire and the other tire flat, a 360 would still rev to 6k no problem with just a solid bottom end , maybe good resized rods/bolts as for running without coolant i would say good synthetic 20/50 oil, maybe slightly overfilled, and the carb on the rich side, Big solid 7 blade fan.

We are running a 9 inch ford with a mini spool and ultra low gears ( anywhere from 4.56 to 5.89 ratio). So weve got the traction and gears to match just lookiing to make some more power.