Struggle With Racist :/

I love my father, we are pals. He's never been much of a dad, but I learned to get past it and we are more like good friends. I love him, but he's racist. I hate it so much, I struggle with it constantly. I was in the car with him the other day and he got some road rage and yelled that the other person was the N word and I choked on my water and was like "dad what THE FUCK did you just say?!" and he says he's not racist, but he drops all of these racist slurs here and there like it's okay, IN FRONT OF HIS 9 YEAR OLD THAT I TAKE CARE OF. Now the kid knows better than to repeat anything my father says, we've had a talk about it because I practically raise him now (I'm staying with my dad now because he can't take care of himself or his kid, I miss my house :/) but it's still frustrating to hear these things. He says "oh I have Mexican friends, I can't be racist" and I just don't know how to respond. Any tips on how to proceed with this situation?