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I believe NO2 handles heat better. Less expansion. Not for sure though it's been a while since I read about it. NASCAR uses it in their tire too I believe.
Hey, finally my chemistry degree comes in handy. Nitrogen gas, N2, is nearly inert and does not react with other chemicals (tire) like oxygen gas. Its true that the atmosphere is 78% nitrogen gas, but the 21% oxygen is enough to make air more reactive than just pure nitrogen. As for the benefits of using it, Ill put it this way. If its free, go for it. If you don't want to pay for it, you probably won't notice a difference.
Nitrogen has the same benefits as standard air. Unless you're driving deep into turn 4 at Atlanta Motor Speedway at 198 mph, you don't need it. Manufacturers of nitrogen inflation systems still recommend regular air pressure checks at the same intervals of standard air. Remember, it's the correct pressure which does the work, not the type of air. Nitrogen is a gross profit sell-up, pushed heavily by Costco in my area. If you have a flat somewhere and get the tire repaired, you aren't getting nitrogen back in it, unless you happen to be near a Costco. Just my two cents worth.
The Tires
Tires are another critical component on the race car. A high-speed blowout can be incredibly dangerous.
Photo courtesy Goodyear
Goodyear provides the tires for NASCAR Winston Cup cars.
Like the tires on your car, NASCAR tires are radial tires, but that is about the only similarity. The tires on a NASCAR race car have some very special requirements. They have to remain stable at very high temperatures and speeds, provide incredible traction and be changed very quickly.
Nitrogen Instead of Air
Most of the teams remove the air from the tires and replace it with nitrogen. Compressed nitrogen contains less moisture than compressed air. When the tire heats up, moisture in the tire vaporizes and expands, causing the pressure inside the tire to increase. Even small changes in tire pressure can noticeably affect the handling of the car. By using nitrogen instead of air, the teams have more control over how much the pressure will increase when the tires heat up.