Forza Horizon 5 has several level systems within the game. Players earn XP for their overall level, earn accolade points for their Campaign level, and each vehicle has a Performance Index level.
Players have an overall level system that rewards XP for various activities such as races, destroying XP boards, and skill chains. Players can unlock large XP gains with skill points with each vehicle's mastery. Participating in races is the easiest way to earn a lot of XP, and gaining levels can help you unlock new cars.
Each level-up rewards a Wheelspin, which can reward CR, vehicles, emotes, clothing, and more. The level system also features Prestige Ranks that scale with the levels up to the 2,999 level cap. Each Prestige Rank will reward a Super Wheelspin, and here are the levels each Prestige Rank is unlocked with:
Earning accolades in Forza Horizon 5 in races, free roam, or events will raise your Accolade Level, which unlocks new campaign activities. The Horizon 5 campaign features cross-country, street, dirt, PR, and Horizon festival activities that players must unlock with each level. Participating in the races and campaign activities is a good way of earning Accolade Levels to progress through the campaign.
Each car has a Performance Index that determines its class. Racing solo in the campaign will pit you against cars with similar PI, so it's good to have various vehicle levels. Vehicle classes include D, C, B, A, S1, and S2. Some races and events require a certain class, so keep each class's level caps in mind.
For more Forza Horizon 5 guides, take a look at Best Starter Cars in Forza Horizon 5 on Pro Game Guides.