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The increase to 65 should be accompanied by a change in radius, down to 17".

Somewhere on this forum (might be s60 side) there is a link for a tire size comparison which shows a 65 17" tire is about 2mm difference in circumference than a 60 18", meaning rolling distance is nearly identical, so speedometer will show correct speed, no change in torque due to smaller/bigger wheels, etc.

The increased sidewall (i'm told, don't know if there is any empirical data indicating this) is supposed to be better for a few reasons like increase sidewall gives better flexibility, better if you hit a curb, etc. This makes sense to me but just don't know based on my lack of research.
 
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