Level Editor - Why is my vehicle always floating above the terrain

I move the terrain in the editor to the height where the tires appear to be on the terrain. However, when I click play, the vehicle again floats slightly above the terrain, as if it's on an invisible terrain slightly higher.

How do I stop the vehicle from floating, on the terrain and the road?

Sorry if I'm missing something obvious, I just started trying out the level editor.

Screenshot:

 

Yes, I was checking out of the editor because I noticied this with the collisions. However, my Z coordinate is below zero.

I moved the Z coordinate above zero and it's still floating

 

redacted

 

Yep, I hit play and it still floats. Also moved the spawns and it didn't do anything.

 

redacted