Wallace started racing in the Bandolero and Legends car racing series, as well as local late model events, at the age of nine. In 2005, he won 35 of the Bandolero Series' 48 races held that year. In 2008 he became the youngest driver to win at Franklin County Speedway in Virginia.

Bubba returned to the Nationwide Series for Joe Gibbs Racing in the No. 20, starting in May at Talladega Superspeedway where he would finish 34th after being involved in The Big One while running 13th. He ran only one more Nationwide race that year, at Daytona in July with Coca-Cola's "Share a Coke" campaign sponsoring where he would finish a strong 7th.