This thesis presents the development of a new coarse-grained model for molecular dynamics simulations. It builds on an existing model by incorporating small oscillations into the formulation rather than treating the simulated molecules as rigid. The equations for the potential and force between two molecules with a defined geometry and oscillation are formally derived and contrasted to the previous model. Due to its symmetry and simple oscillation modes Buckminsterfullerene is used to study the accuracy of the new model. The fitting of the coarse grained potential to the full atomistic potential curves is achieved by approximating the changes due to the oscillations with polynomial functions of the parameters. The new method accurately models the oscillations which is verified by full atomistic simulations and other coarse grained models. The temperature and oscillation dependence of the dynamics of the system is explored as well.