The urban tram introduced recently has a low-floor structure for the convenience of passengers getting on and off. To adjust the low-floor level and improve performance on curves, most low-floor trams have IRWs (independently rotating wheels) with no central axle between the two wheels. Eliminating the central axle, however, creates several inherent problems, such as insufficient guiding force and excessive wear. To analyze these problems, a new analytical model is described in this paper to describe the dynamic characteristics of IRWs more precisely. This analytical model is developed to consider the effects of longitudinal creep in particular, which have been ignored in conventional analytical models of IRWs. In addition, a running stability analysis based on the newly developed analytical model is conducted to compare the critical speeds of IRW-axle vehicles and rigid-axle vehicles. The dynamic characteristics of an initial disturbance are compared to verify that the analytical model is effective in expressing the dynamic characteristics of IRWs.