Lowest shadow is actually most realistic, shadows are way too sharp and detailed in higher levels. Crazy thing is that you could get away with just putting blended edge rectangle under the car and be done with it, no need to do all that computing and that alone would transform how game looks. For forest objects you could put just some rectangle under covered area, that would remove a LOT of calculation and still be better than none, if done with nice blending at edges, it would probably even look better than these overly sharp per pixel calculated heavy shadows. Show me photo from shadow that is cast 1000 meters away, show me photo of reflection that comes from 1000 meters away, otherwise, cut down drawing distance of those to 300 meters or less.
That looks scary. There is something terribly wrong with this red car, it always ends up wrong side up when I drive with it, I even had ESC on this time.