Last week, I was tinkering with the homing missile. I didn't like the way it behaved. The problem was the turning radius. A larger radius would make it very difficult to hit the target, since the missile couldn't turn quickly enough. A smaller radius helped, but looked boring, because the missile would turn sharply in the beginning, then fly in a mostly straight line. Having the missile flying along a straight line also makes impossible to fire around corners.
The simple solution was to adjust the turning radius depending on the distance to the target. At a long distance, the missile will fly along a smooth arc. When it comes closer it will gradually turn quicker, following the target even through tight turns.
The shock wave of the explosion will throw all nearby cars around, making this weapon even more useful. Together with a massive sound effect, camera shake, particle effects for the smoke trail and explosion, firing the homing missile really gives you a sense of power.