How does engine placement in a Custom Vehicle affect gameplay?

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The most interesting vehicle slot in the game, the Garage, has three different parts: The vehicle construction, the wheels and the engine.
The wheels and the engine have adjustable placement.
Being able to move wheels around makes sense. We can move the wheels more close or apart from each other, and we can make the suspension higher or lower.
However, I cannot figure out what moving the engine can do. I have encountered little changes in gameplay, but I don't know what exactly these changes are and how I can use them.
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How does engine placement affect handling?
In the handling department, the rear-engine layout is tricky to handle because all the weight is at one end of the car. When a car makes a sudden turn it creates a pendulum effect which causes high momentum and resulting in over steering. The rear of the car loses traction and slides out of line causing fishtailing.Why is location of engine important for performance?
Placing the engine at the front of a front-wheel drive vehicle keeps weight over the driven wheels, improving traction. It's also a very efficient way of putting the power down as the distance from the engine to the driven wheels is short, minimising losses through rotational components.What is the least common type of engine placement?
Mid-engine cars are the least common configuration of the three. This design also allows the car to achieve ideal weight distribution, center of gravity and traction.What is engine location?
A mid-engine is located in between the front axle and rear axle. If the engine portion crosses the front or rear axle, it is named front or rear engine respectively.Engine Placement EXPLAINED
Sources: Stack Exchange - This article follows the attribution requirements of Stack Exchange and is licensed under CC BY-SA 3.0.
Images: Matheus Köhler, Axel, Gustavo Fring, Pixabay