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Physics calculations are done by the server who is hosting the race, not by your PC
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Fred, I've been hosting Assetto Corsa servers since early access. I can assure you the number of cars on track DOES effect your CPU as the physics of all cars on track are calculated on it, not the server.
Other titles such as Race 07, fF2, iRacing etc utilise the server for calculating physics and just broadcast the position of the car to your computer, therefore more powerful servers are required to host.
You could literally host an Assetto Corsa server on your phone.
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I knew from the start it was a population issue as it only happened in server 1, (24 cars as opposed top 20 in the lower servers)
Hoefully I have sorted it short term till I get a better CPU
Thanks for the advice guys
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Don't be too hasty in replacing your CPU, it's more of a GPU issue.
Try the same car/track combo offline with a full grid of AI, and start the race from the back of the pack. This should replicate the issue. Then turn down your graphics settings one by one starting with reflections, this is a major one. Anisotropic and anti aliasing are also big frame rate killers and shadows too.
What graphics card are you using?