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The Wheel Offset is the distance into the wheel where it attaches to the hub on the car.
An Offset of Zero would mean that the wheel attaches to the hub in the center of the wheel.
The level to which the offset of a set of wheels need to match that of the car is very dependent on the car. Some cars will need to have wheels with precisely the correct value, otherwise damage to the suspension or other components will happen over time.
Having wheels with the incorrect offset will have an effect on the way the car handles as well. The tracking may also need to be adjusted.