1) To allow for inheritance and polymorphism, classes have some overhead. Records do not allow them, and in some situations may be somewhat faster and simpler to use. Unlike classes, that are always allocated in the heap and managed through references, records can be allocated on the stack also, accessed directly, and assigned each other without requiring to call an "Assign" method.
Also records are useful to access memory blocks with a given structure, because their memory layout is exactly how you define it. A class instance memory layout is controlled by the compiler and has additional data to make objects work (i.e. the pointer to the Virtual Method Table).
2) Unless you allocate records dynamically, using New() or GetMem(), record's memory is managed by the compiler as ordinals, floats or static arrays: global variables memory is allocated at startup and released when the program terminates, and local variables are allocated on the stack entering a function/procedure/method and released exiting. Allocating/releasing memory in the stack is faster because it doesn't require calls to the memory manager, it's just very few assembler instructions to change the stack registers. But be aware that allocating large structure on the stack may cause a stack overflow, because the maximum stack size is fixed and not very large (see linker options).
If records are fields of a class, they are allocated when the class is created and released when the class is freed.
3) One of the advantages of generics is to eliminate the need of low-level pointer management - but be aware of the inner workings.