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There's a couple definitions for this. One is when your alignment is off or your chassis is bent. The axles won't drive along the same axis due to this. This causes excessive wear to the tyres.
The other refers to instances of pulling a trailer. The trailer wheels turn inside the radius of the wheels of the tow vehicle. This is why you see notices on tractor-trailers that they make wide right turns, since they have to pull out far enough to ensure their trailer wheels will miss curbs and other obstacles when they go to make their turn.
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