diff --git a/racing.h b/racing.h
index b6967b3..45bbcba 100644
--- a/racing.h
+++ b/racing.h
@@ -54,6 +54,7 @@ struct
 
 
   TPE_Vec3 carPositions[2]; ///* Current and previous position.
+  TPE_Vec3 carRotations[2]; ///* Current and previous rotation.
 
   LCR_GameUnit wheelRotation;
   LCR_GameUnit wheelSteer;
@@ -95,6 +96,21 @@ uint8_t _LCR_racingCollisionHandler(uint16_t b1, uint16_t j1, uint16_t b2,
   return 1;
 }
 
+LCR_GameUnit _LCR_racingSmoothRot(LCR_GameUnit angleNew, LCR_GameUnit angleOld)
+{
+  /* We'll smooth small rotations by averaging the last two angles; bigger
+     rotations won't be smoothed -- firstly this removes lag for fast rotations
+     and also deals with the issue of averaging e.g. 1 and 359 degrees. */
+
+  LCR_GameUnit diff = angleNew - angleOld;
+
+  if (diff > LCR_GAME_UNIT / 8 ||
+    diff < -1 * LCR_GAME_UNIT / 8)
+    return angleNew;
+
+  return angleOld + diff / 2;
+}
+
 /**
   Initializes new run.
 */
@@ -108,6 +124,11 @@ void LCR_racingRestart(void)
   LCR_racing.wheelRotation = 0;
   LCR_racing.wheelSteer = 0;
 
+  LCR_racing.carPositions[0] = TPE_vec3(0,0,0);
+  LCR_racing.carPositions[1] = LCR_racing.carPositions[0];
+
+  LCR_racing.carRotations[0] = TPE_vec3(0,0,0);
+  LCR_racing.carRotations[1] = LCR_racing.carRotations[0];
   // TODO
 }
 
@@ -146,6 +167,11 @@ void LCR_racingInit(void)
   LCR_racingRestart();
 }
 
+/**
+  Gets current car transformation intended for rendering, i.e. potentially with
+  smoothing and interpolation applied to the underlying internal state in the
+  physics engine.
+*/
 void LCR_racingGetCarTransform(LCR_GameUnit position[3],
   LCR_GameUnit rotation[3], LCR_GameUnit interpolationParam)
 {
@@ -163,17 +189,24 @@ void LCR_racingGetCarTransform(LCR_GameUnit position[3],
   position[0] = v.x;
   position[1] = v.y;
   position[2] = v.z;
+
+  rotation[0] = _LCR_racingSmoothRot(LCR_racing.carRotations[0].x,
+      LCR_racing.carRotations[1].x);
+
+  rotation[1] = _LCR_racingSmoothRot(LCR_racing.carRotations[0].y,
+      LCR_racing.carRotations[1].y);
+
+  rotation[2] = _LCR_racingSmoothRot(LCR_racing.carRotations[0].z,
+      LCR_racing.carRotations[1].z);
 #else
   position[0] = LCR_racing.carPositions[0].x;
   position[1] = LCR_racing.carPositions[0].y;
   position[2] = LCR_racing.carPositions[0].z;
+
+  rotation[0] = LCR_racing.carRotations[0].x;
+  rotation[1] = LCR_racing.carRotations[0].y;
+  rotation[2] = LCR_racing.carRotations[0].z;
 #endif
-
-  v = TPE_bodyGetRotation(&(LCR_racing.carBody),0,2,1);
-
-  rotation[0] = (v.x * LCR_GAME_UNIT) / TPE_F;
-  rotation[1] = (v.y * LCR_GAME_UNIT) / TPE_F;
-  rotation[2] = (v.z * LCR_GAME_UNIT) / TPE_F;
 }
 
 void _LCR_drawPhysicsDebugPixel(uint16_t x, uint16_t y, uint8_t color)
@@ -347,7 +380,6 @@ void LCR_racingStep(unsigned int input)
 
   TPE_Vec3 tmpVec = LCR_racing.carPositions[0];
 
-
 LCR_racing.carPositions[0] =
   _LCR_TPE_vec3DividePlain(
     TPE_vec3TimesPlain(
@@ -374,6 +406,13 @@ LCR_racing.carPositions[0] =
 
   LCR_racing.carPositions[1] = tmpVec;
 
+  tmpVec = _LCR_TPE_vec3DividePlain(TPE_vec3TimesPlain(
+      TPE_bodyGetRotation(&(LCR_racing.carBody),0,2,1),
+      LCR_GAME_UNIT),TPE_F);
+
+  LCR_racing.carRotations[1] = LCR_racing.carRotations[0];
+  LCR_racing.carRotations[0] = tmpVec;
+
   LCR_racing.tick++;
 }
 
diff --git a/renderer.h b/renderer.h
index 5638271..4058084 100644
--- a/renderer.h
+++ b/renderer.h
@@ -98,34 +98,12 @@ void LCR_rendererSetCarTransform(LCR_GameUnit position[3],
   LCR_renderer.carModel->transform.translation.z =
     (position[2] * LCR_RENDERER_UNIT) / LCR_GAME_UNIT;
 
-// TODO: make a separate function that does the smoothing (updateCarTransform)
-LCR_renderer.carModel->transform.rotation.x =
-_LCR_smoothRotation(LCR_renderer.carModel->transform.rotation.x,
-    S3L_wrap((rotation[0] * S3L_F) / LCR_GAME_UNIT,S3L_F),3);
-
-
-/*
-LCR_renderer.carModel->transform.rotation.y = S3L_wrap((rotation[1] *
-  S3L_F) / LCR_GAME_UNIT,S3L_F); // don't smooth for faster reaction?
-*/
-
-LCR_renderer.carModel->transform.rotation.y =
-_LCR_smoothRotation(LCR_renderer.carModel->transform.rotation.y,
-    S3L_wrap((rotation[1] * S3L_F) / LCR_GAME_UNIT,S3L_F),1);
-
-
-LCR_renderer.carModel->transform.rotation.z =
-_LCR_smoothRotation(LCR_renderer.carModel->transform.rotation.z,
-    S3L_wrap((rotation[2] * S3L_F) / LCR_GAME_UNIT,S3L_F),3);
-
-/*
   LCR_renderer.carModel->transform.rotation.x = S3L_wrap((rotation[0] *
     S3L_F) / LCR_GAME_UNIT,S3L_F);
   LCR_renderer.carModel->transform.rotation.y = S3L_wrap((rotation[1] *
     S3L_F) / LCR_GAME_UNIT,S3L_F);
   LCR_renderer.carModel->transform.rotation.z = S3L_wrap((rotation[2] *
     S3L_F) / LCR_GAME_UNIT,S3L_F);
-*/
 }
 
 void _LCR_pixelFunc3D(S3L_PixelInfo *pixel)
@@ -1184,7 +1162,7 @@ void _LCR_rendererLoadMapChunk(uint8_t chunk, int8_t x, int8_t y, int8_t z)
 /**
   Serves for smoothing out angle change, e.g. that of camera rotation.
 */
-S3L_Unit _LCR_smoothRotation(S3L_Unit angleOld, S3L_Unit angleNew,
+S3L_Unit _LCR_rendererSmoothRot(S3L_Unit angleOld, S3L_Unit angleNew,
   unsigned int amount)
 {
   /* We have to do the following angle correction -- even if keep angles in
@@ -1428,10 +1406,10 @@ void LCR_rendererCameraFollow(void)
   LCR_renderer.scene.camera.transform.translation.y /= 2;
   LCR_renderer.scene.camera.transform.translation.z /= 2;
  
-  LCR_renderer.scene.camera.transform.rotation.x = _LCR_smoothRotation(
+  LCR_renderer.scene.camera.transform.rotation.x = _LCR_rendererSmoothRot(
     transPrev.rotation.x,LCR_renderer.scene.camera.transform.rotation.x,8);
 
-  LCR_renderer.scene.camera.transform.rotation.y = _LCR_smoothRotation(
+  LCR_renderer.scene.camera.transform.rotation.y = _LCR_rendererSmoothRot(
     transPrev.rotation.y,LCR_renderer.scene.camera.transform.rotation.y,6);
 #endif
 }