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The ever increasing competition of present day has made the timely and cost effective development of high-quality, precision products, of great importance to various industries. Hence, applications of computer simulation have radically increased in recent years. This paper presents a development of vehicle dynamics simulation and animation environment using Matlab-Virtual Reality Toolbox which can be used for the analysis of vehicle performance. This simulation tool consists of three modules (simulator, preprocessor, and animator) and can provide comprehensive responses and animation of different vehicle maneuvers.