Adjust latency in multiplayer mode to solve car input lag

I noticed that it's almost impossible to drive a car in Factorio multilayer mode. There is an unmanageable lag between the keys pressed and the resulting movement of the vehicle. This effect happens anytime one is not the host of a multiplayer game.
In my research concerning the car driving problems, I have turned up several posts that explain that this is due to an intentional delay hard-coded into the game that helps with client synchronization. I have read that apparently one can adjust the "latency" or "ping" setting when creating the game (links mentioning this provided at the bottom). This should change the amount of delay the game uses before updating the world state for each connected player. Since I am playing a two player game and both our computers are connected directly to each other through an ethernet cable, I believe this value can be lowered to 10 or even 5 milliseconds. Which would solve the input lag when driving a car in multiplayer.
However I do not see this setting anywhere when in the game creation interface? Has it been removed?
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How do you reduce input lag delay?
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