(taken straight from the periodic challenge thread)
I've probably recommended some wheels numerous times, but I'll do it again.
I'm using the Logitech G27, which is one of the best wheels around. Three great pedals, a six-speed gear shifter, 900° turning force feedback steering wheel with flappy paddles behind it for gear shifting... But the thing is, it's usually about 300€. Right now one can be bought for about 250$. With well over a hundred hours in various racing games, I can say it has been worth it. Englishman bonus: you can attach the gear shifter on the left side of the wheel just as well! And nothing forces it to be attached on the same level as the wheel, so it's possible to put it on the hip level like in a real car.
http://www.amazon.com/Logitech-941-00 ... acing-Wheel/dp/B001NT9TK4Another one I can recommend is the Logitech Driving Force GT. The wheel turns 900° and has great force feedback effects. However, the pedals (throttle and brake, clutch is missing) aren't very good. It has a sequential (up/down) gear shifter. The prices are usually about 100$-150$. Right now you can get one for 120$.
http://www.amazon.com/Logitech-PlaySt ... ce-Racing-3/dp/B0015HYPOOIf your monetary situation allows it, Vrindu has set up and example for the best setup available: a Thrustmaster T500 steering wheel+pedals, a cup seat and an H-pattern gear shifter (not sure if he had one yet). They should be of a high quality, but they are very pricey. I almost considered selling my G27 and getting a T500 for about 400 € (100 € more than the G27), but then I noticed the gear shifter is sold separately for over a hundred euros. Gulp.
The main thing to check when buying your first wheel is that is has force feedback and a general rule of thumb is that a wheel costing less than 100 € won't be fun to use. The cheap wheels don't have any feel to them so driving is difficult. Having a clutch pedal and an H-pattern gear shifter isn't mandatory, but makes driving much more fun.
The Logitech G25 should be very much like the newer G27, except it's slightly noisier, you can switch the gear shifter between H-pattern and sequential styles, the wheel only has two buttons instead of six and the pedals cannot be adjusted. Overall an excellent choice, and one can be bought for only 150 $ in Amazon! If you're looking for a good price-quality ratio, this one can't be beaten, provided the wheel is in good condition like the sellers say.
http://www.amazon.co.uk/Logitech-G25-Racing-Wheel/dp/B000I7NRNC