Burnout Paradise is set in an open-world environment.] Players have the opportunity to progress at their own pace and level; the game, unlike others, is not actually set to a rigid gameplay framework. According to Alex Ward, creative director of the game at developer Criterion Games, this game is a "complete reinvention" of the Burnout series. He also said that "to create truly next-generation gameplay, they needed to create a truly next-generation game from the ground up".] Initially day and night cycles were not included in the game but a software update entitled "Davis" added this element to the game. For the first time in the series, records are now kept on a player's drivers license, including statistics such as fastest time and biggest crash for every street in the game. Completing events raises the driver rank, which unlocks access to new cars. 
In previous Burnout games, "Crash Mode", was a dedicated mode in which players were given multiple scenarios in which to cause the biggest crash. In Burnout Paradise, "Crash Mode", now called "Showtime", can be initiated at any time and place in the game. Showtime does differ from the previous incarnation of Crash Mode being that instead of crashing into a busy intersection and watching a crash play out, Showtime has bouncing the vehicle around for as long as possible to gain points. During a race players may now take any route to get to the destination. Races and other events are started by simply stopping at any of the traffic lights and applying the accelerator and brake at the same time. The game features the ability to customize race settings, such as traffic, race routes, and including/excluding cars based on their boost types 
Paradise's damage system has also been reworked. There are now two different types of crashes based on the car's condition after the crash.[] If the player's car manages to retain all four wheels and does not break its chassis, the player can drive out of the crash and continue playing; this is called a "driveaway". If a player's car loses any wheels, the engine is damaged too much from an impact, the car lands on its side or roof or lands outside of the game's map, the car is in a "wrecked" state and the player will have to wait until their car is reset. Cars dynamically compress and deform around objects they crash into.
Cars now have manufacturer and model names, which are loosely based on real-world cars. Cars may not be "tuned up" or customized apart from color changes, which may be done in real-time by driving through the forecourt of a paint shop, or by selecting the color during vehicle selection.[] Other real-time changes include driving through the forecourt of a gas station to automatically refill the vehicle's boost meter, and driving through the forecourt of a repair shop to automatically repair the vehicle.