A methodology is presented for estimating vehicle handling dynamics, which are important to control system design and safety measures. The methodology, which is based on an extended Kalman filter (EKF), makes it possible to estimate lateral vehicle states and tire forces on the basis of the results obtained from sinusoidal steering stroke tests that are widely used in the evaluation of vehicle and tire handling performances. This paper investigates the effect of vehicle-road system models on the estimation of lateral vehicle dynamics in the EKF. Various vehicle-road system models are considered in this study: vehicle models (2-DOF, 3-DOF, 4-DOF), tire models (linear, non-linear) and relaxation lengths. Handling tests are performed with a vehicle equipped with sensors that are widely used by vehicle and tire manufacturers for handling maneuvers. The test data are then used in the estimation of the EKF and identification of lateral tire model coefficients. The accuracy of the identified values is validated by comparing the RMS error between experimentally measured states and regenerated states simulated using the identified coefficients. The results show that the relaxation length of the tire model has a notable impact on the estimation of lateral vehicle dynamics.