There are five different camera views available in LFS. You can switch between them by pressing 'V', or 'Shift+V' for reversed rotation. Besides these predefined views, you can also create a custom view per car, allowing for a wide range of possible view angles.
Probably the most used and most realistic camera view available in LFS. This view puts you directly into the virtual driver's helmet, letting you only see what a real person sitting in the car would be able to see. Depending on your player settings, this view can either place you on the left or on the right side of the car.
The second most used view in LFS, removing all but the car's wheels from the display. Some people prefer this setting, as it doesn't block your view like the In-Car one does. Besides that, it also increases the sense of speed because you see the ground zipping by and it can help keeping your framerate up on older systems.
Most prominent in arcade games, this is a seldom used viewing angle in LFS. Some people prefer this one to know what's going on around the car, without having to resort to the look-left/right feature.
Probably never used while racing, this can be a nice view when analysing replays to find out who caused the T1 mayhem this time.
Spectator / TV Camera
Like the name suggests, this is a view similar to what you see on TV while watching races. There are multiple fixed points around the track, switching to the next one as the currently focused car gets out of view of the previous camera. Most probably not the best choice for racing, but rather nice for watching replays.