In this paper, a new bushing model for vehicle dynamics analysis using Bouc-Wen hysteretic model is proposed. Bushing components of a vehicle suspension system are tested to capture the nonlinear behavior of rubber bushing elements using the MTS 3-axes rubber test machine. The results of the tests are used to define parameters in Bouc-Wen bushing model, which was employed to represent the hysteretic characteristics of the bushing. Bushing parameters are obtained by using genetic algorithms and sensitivity analysis of parameters are also carried out. ADAMS program was used for the identification process and VisualDOC program was employed to find the optimal parameters. A half-car simulation was carried out to show the usefulness of the developed bushing model.