Either add some cash to your LFS account to download the hi-res skins or go into the MISC option in game and select the 512- 256 option instead of the higher ones.
High resolution skin downloads
Live for Speed automatically downloads the skins of other people's cars when you are online, provided the skins have been uploaded to LFS World. These are in low resolution by default. If your computer, graphics card and internet connection are good enough, you can auto-download high resolution skins instead. To use this setting, you need some LFS World credit (that is, a positive balance on your Live for Speed account). We need to charge for this service, because of the increased bandwidth and the need to provide and maintain a special skin web server.
You can put some money into your LFS account by making a payment here at the main site or at LFS World. You can also use a voucher if you prefer. Then when you have a positive account balance, you can turn on high resolution skin downloads inside Live for Speed. It will download high resolution skins until your LFS World credit is eventually used up.
The price for this service is 2000 skin downloads for £1 (1 UK pound).
When you download your first hi-res skin, you will be assigned 2000 skins and £1 will be deducted from your LFS account balance. This assignment happens every time your 2000 skin downloads are used and for as long as you have at least an account balance of £1 or more.