The nonlinear dynamics of towed wheels is analysed with the help of the brush tyre model. The time delay in the tyre-ground contact and the non-smooth nature of the system caused by contact friction are considered simultaneously. Firstly, the centre manifold reduction is performed on the infinite-dimensional system transforming the governing equations into a normal form containing linear and piecewise-smooth secondorder terms. Then, this normal form is used to establish the stability of the non-hyperbolic equilibria of the system and to give an estimation of the limit cycles emerging at the linear stability boundary. This way, it is demonstrated how subcritical Hopf bifurcations in the non-smooth delayed system generate bistable parameter ranges, which are left undetected by standard tyre models.