The rear axles of a rear wheel drive or all-wheel drive car have come a really long way, with the latest systems featuring advanced torque vectoring systems such as the Vector-Drive system BMW uses (they call it Dynamic Performance Control) supplied by GKN Driveline. But still, do you know how a basic differential works? Reader Zali sent in this really cool video that makes understanding how a differential works so simple! It’s about 8 minutes long and great if you like “how stuff works” kinds of content.

Watch the video after the jump.