Remove the old asphalt. Use a circular saw to cut the existing asphalt and remove in manageable chunks.
Compact the underlying subgrade with a plate compactor.
Apply tack adhesive to the boundaries of the driveway using an old broom. This creates a watertight seal and strong bond between the edge and the incoming asphalt.
Lay the first layer of tar over the subgrade roughly 6 inches deep. Rake the asphalt to ensure a smooth, even layer. Allow the asphalt to cool and harden before applying the second layer.
Apply the second and final layer of asphalt. Again, rake it to ensure the driveway is smooth and level. Use a compactor, if necessary, to compact the second layer and make it even with the yard. Allow the driveway to cool and settle for at least 24 hours before driving on it.