He was also involved with car racing, driving MGs and Rileys. In 1934 he joined the MG works team and in the 1934 BRDC International Trophy Race at Brooklands, Handley drove well until a back axle broke late in the race. Later in 1934 he co-drove Eyston's MG K3 'Magic Magnette', but crashed on the Railway Straight when an axle bearing seized. It was in September 1934 that he raced an N type MG Magnette in the Ards TT in Northern Ireland in the International RAC Sports Car Race but had to retire with engine trouble. In 1934 and in 1935 he raced MGs in the Isle of Man Mannin Beg 'round the houses' event. In 1934 he led on the first lap with the MG Magnette but had a crash and retired shortly afterwards. In the following year he entered the Mannin Beg with the 745cc MGR but retired with axle failure.