Hokay, so...I swear to the lord on high that i looked for the answer to this seemingly easy question for more than an hour so here it goes:

The noob asks, "why can't I see custom skins in the demo?"

^lol why is he such a noob?^

because...you can't automatically download skins on demo!

You can use custom skins in demo, but others can't see it, because you have to be licensed to upload skins to lfsworld.

As harjun says, the demo version has no automatic skin download, you can however, ask people to send you their skins and you can place them manually into LFS, you would then see them.
But that's a royal pain in the arse, and auto skin downloading is just one of the many reasons why you should get a license

thank you very much. While we're here, how does one download custom skins? Again sorry for the noob questions, but your help is far too valuable to pass up.

You can only download them if the driver who uses the skin uploaded it somewhere.

LFSWorld has its own automated skin downloading function, whenever a user wishes to use a skin online he/she uploads it to the LFSWorld skin area and everyone who races along side him will receive the skin automatically.

Quote from Rooble :

LFSWorld has its own automated skin downloading function, whenever a user wishes to use a skin online he/she uploads it to the LFSWorld skin area and everyone who races along side him will receive the skin automatically.

Yes, but don't forget to add this only works for licensed racers

Download them...put them in the

LFS>Data>Skins folder