I used to race nitro truggy's and my kit cost well over that. Just the car alone without engine or anything was £400, then the engine another £300 to £450 depending on which one, I got around 5 engines, then the two servo's in my car are around £120 each, then the exhaust which is around £ 60 to £80. You then need a good few sets of tyres which were around £60 a set of 4.
On top of that you still need the radio system, mine was around £300 iirc. Then you still need all the other gear to run the darned thing, starter box with batteries, another £125 or so, tools, fluids, fuel, etc. etc. Was quite an expensive hobby.