The only essential modifications for drifting are the Diff and suspension. Obviously weight reduction and increasing the power output of the engine would be nice but on a budget and while you are learning these are unimportant.
Patience, steady control and very deliberate slow throttle and steering controls are the difference between hacking a car around and drifting.
The LSD in a car sends the driven power proportionally to the wheels with more going to the wheel that needs to rotate a greater distance. The drawback of having a Slip Diff fitted is that when one wheel has no grip and spins all of the power goes to this wheel. It is something you'll notice if you have one wheel in snow or mud and the other on a grippy surface leaving you effectively stuck. On a fast road you can get a sharper turning circle and put down more power if you moderate the rate of power going to each wheel. An LSD is exactly that and is usually specified as a ratio. For drifting you need a locking diff which encourages the back to slide over the road helping to prolong the duration of the drift.
An adjustable diff will give the best of both worlds but can prove very expensive and is not something available for most cars so go with something like a 2 way diff with 4.788 final drive ratio. On a track or road the LSD will make a big difference to lap times and cornering speeds especially in low grip conditions like wet roads or when you are really hammering the engine so if you intend to do some track work get a slightly higher ratio diff.
The Toyota Corolla AE86 is becomming the classic drift car of choice.They are a really good starter car for drifting the power band is just right, nicely balanced. They cost a fortune to buy now. I would stick fairly standard and go for lightening the car - this has better dividends in drifting. If you wanted to spend a bit of money we spoke with an AE86 drifter and asked about his AE86 setup.
Fantastic for drifting is the Toyota Corolla AE 86 (Hachi Roku - Japanese for eight six.) and speaking to a drifter we picked up the following tips and advice.He recommended a limited slip diff 2 way with a 4.778 final drive ratio.
He also added an APEXi SAFC II fuel controller too. Get more power from the car an engine swap was done and his selection of engine for drift competition use:- An AE92 big port engine (red top) Toda cams 304/288 duration 8.5mm lift.
Mated toToda adjustable cam pulleys, NGK R plugs, OER Quad throttle body kit with pipercross or K&N Filters.
Exhaust - Trust DD exhaust.
Tein coilovers at the front but on the rear use something like the TRD's blue SS 8 way adjustable shock.
Stick on some 9x14in rims with 185/60/14 Yoko A539 (Check the tyre size I'm not too sure of that for those rims but for drifting you certainly want a tight fit to the rim!)