Effects of the speed relaxation time on the optimal velocity car-following model (OVM) with delay time due to driver reaction time proposed by Bando et al.(1995) were studied by numerical methods. Results showed that the OVM including the delay is not physically sensitive to the speed relaxation times. A modified car-following model is proposed to overcome the deficiency. Analyses of the linear stability of the modified model were conducted. It is shown that coexisting flows appear ifthe initial homogeneous headway of the traffic flow is between critical values. In addition, phase transitions occur on varying the initially homogeneous headway.