It is certainly doable, there is a plug-in on the UE marketplace that meaningfully extends Unreal's movement replication to do nicer interpolation and extrapolation of movement, it is called SmoothSync. We used it in lieu of UE's character movement component on the vehicles in the game we shipped a couple years back. It is a bit heavier on bandwidth (to their credit, Unreal's movement component replication is VERY lean) but still well within budget.

The code is horribly ugly, but works well. The ugliness I think is less to do with integrating with Unreal and more to do with the author though. That said, it works.