Terrain Deformation

Hi,
i am planning to make a simple vehicle demo with muddy roads like spintires. I am not quite sure where to start with terrain deformation with vehicle tires. For example when the vehicles tire sink in to mud, it has to deform surface with the force and friction. Here is a video to show the affect.

https://www.youtube.com/watch?v=hrYr5SzGoS8 5:45

Is there any ideas where to start? Or is it possible with terrains? Or do i need a different approach?
Thanks.

@UnrealEverything Thank you for the article.

What we have been up to. You may be interested.
https://forums.unrealengine.com/showthread.php?88558-Skunkwerks-Game-Tools-Dynamic-Terrain-Deformation-Plugin&p=638174#post638174

Dave

You can also fake it, by adding decals to the terrain, and reducing the (effective) collision radius of the wheels while keeping the rendered wheel the same size, thus “sinking” it into the ground.