Same problem here. My ping on a server 70-90 (may about 20-28 online players max.) I can't control cars, because this bug.
Eventuate things what is like "jumping" bugged wheels under the ground and if finally the car start to go, then the engine is give up, because looks like I have lag and the indicator going to the red zone, but I dont have any lags.
(Sorry for bad English.)

@Petrova When the car starts wobbling/jumping you can avoid engine damage by switching to neutral (N) or quickly turn off the engine. For me personally it works better to switch to N and then turn off the engine (if possible because underground it cannot be done). That way the engine does not damage and the car settles down quicker with the engine off so you can restart the engine and be on your way again....at least for a little while. But despite the workarounds this is a very very annoying bug that I hope will be resolved soon because it spoils the game. However, even more important are the deaths of my character by interacting with a car. It's rare but when it happened to me 5 times already. I lose everything and have to start over. Very demotivating. See https://feedback.bistudio.com/T144902.

Same here. Happened to my ADA, exactly the same stuff. Ping is around 40 to 100 sometimes. Official servers.

its nothing to do with ping it's server performance , 1.05 is worse than the past patches . and once you got low server performance the car physics start acting up

Since we are playing in official vanilla servers, still a bug that need to be addressed to BI devs. Cars and bases are nice stuff that make dying and losing stuff a little less frustating. And these are the two things that aren't working well and becoming useless.

In T144774#1965440, @Allantheking wrote:

its nothing to do with ping it's server performance , 1.05 is worse than the past patches . and once you got low server performance the car physics start acting up

I think I can agree on this. I've been playing for about a week now on a decent server (Frankie's HQ) and the more players are on the server the more the cars are acting up. When I am alone cars are acting up now and then but it's livable. When 10 players are on the server driving a car is much of a hassle. I am lucky if I can drive a few km without any trouble. On a server that's crowded I don't even try driving a car. I'll prefer to run instead because the cars give me so much delay due to wobbling/dancing.

I sincerely hope that BI devs are going to address this issues soon cause it's ruining the good thing of cars for a large portion. So far no sign that BI devs are addressing this issue but I continue to have hope they will.

It actually seems to be a combination of both. One single player on a bad connection can trigger wobbly/flying cars on server that is otherwise not having performance issues. As I understand it the issue originates from the suspension simulation, that can go haywire if it runs into desync. This can be triggered by low server fps, nearby players with jittery internet connection, long load times (yeah, a slow HDD can trigger it!) or a combination of all. On my own server I've seen cars fly when the server fps has not been below 2,500 - but the player triggering it was having a lousy internet connection with packet loss, severe lag and ping fluctuating between 50 and 2,000. Server just can't keep sync when that happens, so any nearby car will run into issues.

As long as the car physics simulation is this sensitive to network hiccups, cars will continue to fly.