An apparatus for estimating a road traffic condition and for controlling a vehicle running characteristic includes a controller having a fuzzy inference function and a neural network function. The controller carries out frequency analysis on vehicle driving parameters such as vehicle speed, steering angle, accelerator opening degree, and longitudinal acceleration and lateral acceleration of a vehicle, to thereby determine a mean value and variance of each parameter. It implements fuzzy inference based on a traveling time ratio, an average speed, and an average lateral acceleration, which are obtained from vehicle speed and/or steering angle, to thereby calculate road traffic condition parameters, including a city area degree, a jammed road degree, and a mountainous road degree. According to the neural network function, the controller further determines an output parameter, indicative of the vehicle maneuvering state, by subjecting the mean value and variance of the vehicle driving parameters and the weighted total sum of the road traffic condition parameters to nonlinear conversion. Then, it variably controls the operating characteristic of a vehicle-mounted apparatus such as a rear-wheel steering controlling unit in accordance with the output parameter, thereby variably controlling the vehicle running characteristic.