Technically its not drifting in that pic.. just power sliding

Also you can drift a F1 car.. you just don't see it happen really because the drivers don't try to drift.
The fact that the drivers don't drift, doesn't mean its not possible

any ways your project sounds very interesting, I really want to see how the physics react.

Question though, you say your not using any physics engine? Does that mean every thing is done with c script? isn't this a little less efficient, and less realisitc (and a lot harder) then an actual physics engine?