Wheels are far down

Try deleting all of the wheel dummies and collisions, then replacing them with an original model like the ambulance.

Then do this on the wheel mesh and the dummies(not collision):

Quote from Cj24

I'm guessing the axis is not in the correct position, then. Try using Display > Local Axis > Center to Object on the wheel (not the collision, though).

And use this:
Display > Local Axis > Reset to World

Have you been moving the whole vehicle in Zmod? I moved a model that was from GTA SA and something fucks up and the wheel does not like it. Inport new wheels from a original GTA 4 car?