This paper proposes a novel method for the estimation of the wheel circumferences, which have significant effects on a vehicle model based localization. One of the advantages of the method is that only cost effective onboard sensors, such as GPS, magnetometer, IMU and wheel encoders are used. Moreover, the estimation methods based on pure vehicle models can result in suitable localization, when other solutions are not effective i.e. the GPS signals are not available or other sensors are inaccurate, such as IMU measurements with low, constant velocity. The presented off-line algorithm has three main layers connecting the Kalman-filter and Least Squares based estimation processes in an iterative way. During the procedure the side-slip is estimated, which has a significant impact on the dynamics of the vehicle and the further estimations. Since in the method all of the measurements are used at once and the side-slip is also calculated, a highly accurate identification with low sensitivity on the noise can be reached. The efficiency of the vehicle model calibration is presented through CarSim simulations.