It does, because the front tires touch the wheel wells, causing a type of braking. When this is done at top speeds, it causes hopping. A thinner hole means less slop, less movement, smoother performance.
Not if the axles are bent or wheels/tires are out of round.
How do you true your front wheels/tires?
I glue the tires to the rims, then push them onto an axle, (smaller holes wheels go in the front axle: I use a rear axle for the bigger holed wheels) then put the wheel/axle assembly into a Dremmel and sand them until I don't feel the high spot anymore, measure the diameter and then try and make the other wheel/tire the same diameter.
This seems to make a big difference in how smoothly the cars run.
Micyou, if I catch a bad rim, I just toss it out.....I figure that trying to true the rim by dremelling until true might make the rim too small for the tires. With Afx rims being plentiful, I just use them.
Untrue tires can be dremelled til smooth. Just place in a rear rim onto the dremel, pop on 2 tires, and grind them until they're smooth.
For bent axles, I heat them until they're red hot, then roll them between two smooth, straight metal surfaces. It does lessen the bend......Just gotta be careful not to touch them, lol