In my experiences with this, its usually the other player or players that doesn't have the proper car or track.
That player or players has to leave the room and return with the proper setups. In most cases, its not you.
All of your "click here, click there" still works but you have to click on them between the loops. ( requires alot of clicking on one spot until it connect

)
If you managed to get your setup done between them loops and is ready to hit the track, then go ahead. It does not loop when you are on the track. Only in that lobby.
one time, i enter a lobby and everything downloaded fine but my car was invisible. I checked out the chat room and found that someone was complaining about looping. Even thou i wasn't looping and only had this invisible car, i figured i must be the one looping the lobby. I exited and re-enter the room and my car became visible. Check the chat room and they said the looping stopped. So it was me looping the lobby.
Noticed that some people don't know they are looping when it is them that have a slight problem with the car or track. They try to fix it from there but it won't work. They have to leave the room to fix their problems. Basically, if you can get on the track then its not you looping and you would have to figure it out who's looping and tell them if they are too dumb to figure it out themselves.
There is a couple of idiots out there too. they enter and know that they are looping the lobby just to bug people, This happened once and the guy was laughing it up in the chat room. The rest of us basically had to leave the room and left him there alone until he leaves. Once he was gone, we all returned to that room and there was no more looping.
hope this helps