Align the Wheels
One of the chief ways in which cars lose speed is by unaligned wheels, which cause resistance. Test your alignment by running your car down a wide, smooth ramp and checking if it hews to one side.
Polish the Axle
A lot of speed can be lost to a rough axle, which, if not properly smoothed, can catch and create friction. Sand axles down and straighten them so that there are not burrs or bent places.
Put the Weight in the Back
According to the website Hobbymasters.com, the bulk of the weight of a pinewood derby car should be just to the front of the rear wheels. The weight should be as close to five ounces--the standard car weight--as possible without going over.
Reduce Friction
To reduce friction, lube your axles and your wheels, making sure that they are free of grit and spinning freely. Be aware that most competitions forbid the use of wet lubricants.
Shape The Body Like A Wedge
The best cars are built in the shape of a wedge, which places more weight in the back of the car and helps it cut through the air more efficiently.
Wax The Car
After all sanding has been completed, always wax or polish the car to make it more aerodynamic. This may not count for much at such a low weight, but it can't hurt.
Remove Treads
Many wheels featured on pinewood derby races come with built-in treads. Sand them down evenly so that the wheels are smooth. This will reduce the speed lost to weight and friction.
Go With Three Wheels
While some competitions require all cars to have four wheels, others give an option of three or four wheels. If possible, go with three: less wheels mean less speed lost to friction.
Sand With the Grain
If sanding the car to remove some weight, always sand with the grain, not against it, so as to maintain an aerodynamic design. Only when you are trying to remove a lot of wood should you sand against the grain.
Keep Your Car Away From The Edge
When racing the car, make sure you start it as close to the center of the track as possible. If the track isn't grooved to prevent cars from scraping the sides, the car may lose speed to friction.