This paper will argue that tire damping can be critical to modelling of vehicle dynamic. Tire damping is usually skipped in the process of vehicle modelling. There are two reasons for this. The first one is the simplification of the computer simulation. The second is that the effect of tire damping is thought insignificant to vehicle dynamics. But there is support for skipping tire damping. In this paper, the vehicle performances are investigated with and without tire damping force applied in the dynamic modelling of the system. The transient responses in the time domain and the frequence responses in the frequence domain are analysed to see the effects of tire damping qualitatively and quantitatively. It is shown that significant errors can occur when the tire damping force is skipped during the simulation process.