You can totally do this in Godot. I attempted this same thing a few months back and had a similar issue. I even tried switching to Jolt as well and had the same problem.
Here’s a little video of the final result:
https://www.reddit.com/r/godot/comments/18eqbkn/played_around_with_raycastbased_vehicle_physics/
I wanna say the problem ended up being where I was applying the forces (local vs global). In your case maybe this could work:
ApplyForce(GlobalBasis.Y * wheel.SuspensionForce, wheel.GlobalPosition - GlobalPosition);