Terminal handling conditions can be termed as a function of the length of the car and front/rear weight distribution (and thus the polar moment of inertia of the car) and the front/rear tire traction. The front/rear tire traction is further modified by the relative toll stiffness of the front and rear, that affect the outward weight transferring while cornering. A car with a heavy front with low rear roll stiffness will tend to have a chance to terminal understeer. The rear roll stiffness can be achived by using soft sprint and/or undersized or nonexistent rear anti roll bars. In this condition, since the front tires are more heavily loaded even in the static state, will attain the limits of their adhesion before the rear tires, and thus will help to develop large slip angles. Front wheel drive cars are prone to understeer, not only because their front is usually heavy, but also due to the reduced ultimate grip since the power transmission is through the front wheels.
A lot of automakers design their cars for terminal understeer in a belief that for an average driver it is easier to control the car then terminal oversteer, inspite of the fact that understeer and oversteer can cause a loss of control. Understeer can be ofter reduced by just reducing the speed of the car unlike the terminal oversteer which often requires several steering corrections.
Generally, race drivers prefer a neutral condition or atleast for certain types of racing or some tracks a mild degree or terminal oversteer, since the terminal understeer forces a loss of speed in tight corners.
“Racing drivers generally prefer a neutral condition (or, at least for some tracks and some type of racing, a mild degree of terminal oversteer) because terminal understeer forces a loss of speed in tight corners.”
Read Carroll Smith’s book Drive to Win for an explanation why understeer is a necessary attribute of a circuit car on tarmac.