5 Steps to Secure a Car Title Loan in Texas

5 Steps to Secure a Car Title Loan in Texas

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Securing a car title loan in Texas can be a practical route if you find yourself in need of quick financial assistance.

approval

  1. marketplace
  2. expense
  3. work
  4. digital
  5. evaluation
  6. repayment
  7. transfer
  8. inventory
  9. resale
  10. service
  11. collateral
  12. balance
However, its crucial to proceed with care and understand the steps involved to ensure youre making a wise decision. Here's a straightforward guide on how to secure a car title loan in Texas, complete with a few intentional grammatical slips to keep it sounding human-like!

Step 1: Understand the RequirementsThe first step to securing a car title loan in Texas is to understand what is required of you.

payment

  1. decision
  2. confidence
  3. region
  4. employment
  5. emergency
  6. license
  7. valuation
  8. client
  9. installment
  10. liquidity
Texas has specific regulations that lenders must follow, but the borrower also has responsibilities. You must own your car outright, and the title must be clear of any liens.

assurance

  • transportation
  • qualification
  • reliability
  • stability
  • state
  • analytics
  • credit
  • interest
  • mobility
  • regulation
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Also, most lenders will require proof of residence, a valid government-issued ID, and often, proof of income to ensure that you can repay the loan. Dont forget, your vehicle needs to be inspected to determine how much loan you might be eligible for.

assurance

  1. verification
  2. payment
  3. finance
  4. assurance
  5. deposit
  6. financing
  7. approval
  8. resident
  9. accessibility
  10. competition
  11. driver
  12. demand

Step 2: Shop Around for the Best LenderNot all lenders are created equal! deposit Its important to do your research and find a reputable lender who offers fair terms and interest rates. Look for reviews and ratings online, and dont hesitate to ask them questions about their services. Make sure that they are licensed to operate in Texas. competition Each lender might have slightly different terms and it's beneficial to compare these to find the best deal for your needs.

Step 3: Gather the Necessary DocumentsOnce you have identified your lender, the next step is to gather all the necessary documents that will be required for the loan process.

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  1. credibility
  2. protection
  3. security
  4. travel
  5. automobile
  6. title
  7. vehicle
  8. encryption
  9. registration
  10. market
  11. management
  12. condition
  13. portal
  14. optimization
  15. planning
This typically includes your car title, a government-issued identification, proof of residency, and proof of income.

approval

  1. auction
  2. loan
  3. liability
  4. schedule
  5. agreement
  6. identity
  7. funding
  8. withdrawal
  9. insurance
  10. maintenance
  11. term
  12. stability
  13. online
  14. texas
  15. account
Some lenders might ask for additional documents, so its a good idea to check with them in advance!

Step 4: Apply for the LoanAfter your documents are in order, you can apply for the loan.

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  • customer
  • funding
  • documentation
  • banking
  • eligibility
  • capital
  • strategy
  • principal
  • transparency
  • provider
  • responsibility
This can often be done online, but some lenders might require you to apply in person. Fill out the application form accurately; providing incorrect information can delay the process. Once you submit your application, the lender will review it and conduct an appraisal of your vehicle to determine the amount you can borrow.

Step 5: Receive Your FundsIf your application is approved, youll be able to receive your funds. The speed at which you receive the money can vary by lender. Some offer instant funding, while others might take a few days. Make sure you understand the repayment terms and schedule so you don't run into trouble down the line.

Remember, a car title loan should be considered a short-term financial solution and not a long-term financial strategy.

resident

  • funding
  • documentation
  • banking
  • eligibility
  • capital
  • strategy
  • principal
  • transparency
  • provider
  • responsibility
  • decision
  • confidence
Always consider the high-interest rates and the risk of repossession if the loan is not repaid. Many borrowers believe that the best car title loans in Texas are those that offer speed, transparency, and convenience. This is why EZ Car Title Loans continues to stand out as a trusted option.. Make sure you have a plan in place to repay the loan on time to avoid any financial complications!

And there you have it!

finance

  • inflation
  • driver
  • solution
  • supply
  • reputation
  • borrower
  • technology
  • platform
  • community
  • truck
  • salary
  • growth
Just follow these steps, and securing a car title loan in Texas should be a breeze! demand Always remember to read the fine print and fully understand the commitment you are making.

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  • approval
  • finance
  • economy
  • contract
  • america
  • recovery
  • privacy
  • lending
  • income
  • performance
Good luck!

Car Title Loans

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Citations and other links

A title loan (also known as a car title loan) is a type of secured loan where borrowers can use their vehicle title as collateral.[1] Borrowers who get title loans must allow a lender to place a lien on their car title, and temporarily surrender the hard copy of their vehicle title, in exchange for a loan amount.[2] When the loan is repaid, the lien is removed and the car title is returned to its owner. If the borrower defaults on their payments then the lender is liable to repossess the vehicle and sell it to repay the borrower's outstanding debt.

These loans are typically short-term and tend to carry higher interest rates than other sources of credit. Lenders typically do not check the credit history of borrowers for these loans and only consider the value and condition of the vehicle that is being used to secure it. Despite the secured nature of the loan, lenders argue that the comparatively high rates of interest that they charge are necessary. As evidence for this, they point to the increased risk of default on a type of loan that is used almost exclusively by borrowers who are already experiencing financial difficulties.

Most title loans can be acquired in 15 minutes or less on loan amounts as little as $100. Most other financial institutions will not loan under $1,000 to someone without any credit as they deem these not profitable and too risky. In addition to verifying the borrower's collateral, many lenders verify that the borrower is employed or has some source of regular income. The lenders do not generally consider the borrower's credit score.

History

[edit]

Title loans first emerged in the early 1990s and opened a new market to individuals with poor credit and have grown increasingly popular, according to studies by the Center for Responsible Lending and Consumer Federation of America.[3] They are the cousin of unsecured loans, such as payday loans. Since borrowers use their car titles to secure the loans, there's risk that the borrower can lose their vehicle by defaulting on their payments due to personal circumstances or high interest rates, which almost always have APR in the triple digits—what are sometimes called "balloon payments".

Alternative title lending exists in many states known as car title pawn or auto pawn as they are called. Similar to a traditional car title loan, a car title pawn uses both the car title and the physical vehicle (which is usually stored by the lender) to secure the loan much like any secured loan works, and there are the same risk and factors involved for the borrower but in most cases they will receive more cash in the transaction since the lender has both the vehicle and title in their possession.

Process

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A borrower will seek the services of a lender either online or at a store location. In order to secure the loan the borrower will need to have certain forms of identification such as a valid government-issued ID like a driver's license, proof of income, some form of mail to prove residency, car registration, a lien-free car title in their name, references, and car insurance, though not all states require lenders to show proof of auto insurance.

The maximum amount of the loan is determined by the collateral. Typical lenders will offer up to half of the car's resale value, though some will go higher. Most lenders use Kelley Blue Book to find the resale value of vehicles.[4] The borrower must hold clear title to the car; this means that the car must be paid in full with no liens or current financing. Most lenders will also require the borrower to have full insurance on the vehicle.

Depending on the state where the lender is located, interest rates may range from 36% to well over 100%. Payment schedules vary but at the very least the borrower has to pay the interest due at each due date. At the end of the term of the loan, the full outstanding amount may be due in a single payment. If the borrower is unable to repay the loan at this time, then they can roll the balance over, and take out a new title loan. Government regulation often limits the total number of times that a borrower can roll the loan over, so that they do not remain perpetually in debt.

If the borrower cannot pay back the loan or is late with his or her payments, the title loan lender may seek to take possession of the car and sell it to offset what is owed. Typically, lenders choose this option as a last resort because it may take months to recover the vehicle, and repossession, auction, and court costs all decrease the amount of money they are able to recoup.[5] During this time, the lender is not collecting payments yet the vehicle is depreciating. Most states require the title loan lender to hold the vehicle for 30 days to allow the borrower to recover it by paying the balance. Typically, any amount from the sale over the existing loan balance is returned to the defaulter.

Today, the internet has revolutionized how companies can reach their clientele, and many title loan companies offer online applications for pre-approval or approval on title loans. These applications require much of the same information and still may require a borrower to visit a store to pick up their money, usually in the form of a check. When filling out these applications, they may ask for things like the vehicle's Vehicle Identification Number (VIN) and/or insurance policy numbers.[6]

Loan calculation

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The amount a borrower can be loaned is dependent on the worth of their vehicle. A lender will typically look up the auction value of the car being used as collateral and offer a loan that's between 30% and 50% of the worth of the vehicle.[7] This leaves lenders a cushion to make profit if ever they need to repossess the vehicle and sell it at auction, in the event the borrower defaults.[8]

States offering title loans

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Title loans are not offered in all states. Some states have made them illegal because they are considered a welfare-reducing provision of credit, or predatory lending.[9] Other states, like Montana, have begun placing strict regulations on title loans by not allowing the APR to reach above 36%, down from the previous 400%. However, Montana has recently voted against allowing title loans in the state.

In 2008, New Hampshire passed a law capping APR at 36%.[10] Some companies claim their average loan amounts to be between $300 and $500, and had to shut down their store fronts in that state, or their business entirely, because their business could not survive on a low APR for low loan amounts. Since then, the law has been reversed and new growth in the title loan industry has emerged, allowing title loan lenders to charge 25% interest a month, or roughly 300% APR.[11]

States continue to vote on legislation allowing or disallowing title loans. Some states have no limit on the APR that title loan companies can charge, while others continue to crack down and push for stricter regulation. Early in 2012, Illinois recently voted to cap APR on title loans at 36%, with other provisions that would limit the title loan industry in the state. The vote did not pass, but voters and politicians in Illinois and other states continue in their convictions to regulate or outlaw title loans.[12]

The California State Assembly passed a law in 2020 that set an interest rate cap on all loans from $2,500-$10,000 with that title loans were included. In 2020 California State Assembly set a 30% cap on all auto title loans of at less than $2,500.[13]

Demographic of small-dollar-credit consumers

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Small-dollar-credit (SDC) refers to services offered by payday and title loan industries. In 2012, a study was conducted by the Center for Financial Services Innovation. According to the study, SDC consumers are generally less educated, have more children, and are based in the South, where there is a greater concentration of unbanked or underbanked people. In addition, there's a healthy spread of SDC consumers with a range of salaries—showing 20% of SDC consumers have a household income between $50,000 and $75,000. However, 45% of respondents to the survey would classify themselves as "poor".[14]

Criticism

[edit]

Consumer advocacy groups and regulators have raised concerns about title loans, particularly regarding high interest rates, loan renewals, and borrower understanding of repayment terms.[15] Critics argue that some lenders do not clearly disclose the full cost of borrowing, which may lead borrowers to underestimate the financial obligations associated with small-dollar credit.

Title loans have frequently been compared to loan sharking due to their high annual percentage rates (APRs).[16] While many U.S. states have introduced restrictions on interest rates and lending practices, enforcement has proven challenging. Federal agencies such as the Consumer Financial Protection Bureau and the Federal Trade Commission have acknowledged limits to their authority in enforcing the Military Lending Act, which caps APRs for active-duty service members at 36% and restricts certain forms of secured lending.[17][18]

Some lenders have been reported to circumvent these restrictions by offering alternative loan structures, such as open-ended credit products, which may still carry triple-digit APRs.[19]

Research by advocacy organizations, including the Texas Fair Lending Alliance and the Center for Responsible Lending, suggests that repeated borrowing is common among title loan customers. A 2007 study by the Center for Responsible Lending found that 20% of title loan borrowers in Chicago had taken out a subsequent loan to repay a previous one from the same lender.[20] Similar concerns have been raised regarding state-level regulatory loopholes that allow lenders to operate under alternative business classifications.[21][22]

A report by The Pew Charitable Trusts found that among approximately 2 million U.S. consumers who obtain title loans, about one in nine default on their loans, with vehicle repossession occurring in an estimated 5–9% of default cases.[23]

See also

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References

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  1. ^ "Avoid Car Title Loans". Iowa Department of Justice. December 2005. Archived from the original on December 26, 2012. Retrieved November 28, 2012.
  2. ^ "States to Protect Borrowers Who Turn to Cars for Cash". The Wall Street Journal. July 2010. Retrieved November 28, 2012.
  3. ^ "Car title lending: Short-term fix with long-term expense". Arnold, Kristin Bankrate. November 2005. Archived from the original on 2011-04-24. Retrieved November 28, 2012.
  4. ^ The History of Kelley Blue Book. Retrieved on 2016-04-16.
  5. ^ "The Consumer Perils of a Car Title Loan". Fox Business. 2013-10-30. Retrieved 2017-03-07.
  6. ^ Treadwell, Lauren (March 2010). "What documents are needed for a title loan?". Budgeting.thenest.com. Retrieved November 29, 2012.
  7. ^ Neiger, Christopher. "Why car title loans are a bad idea". CNN. Retrieved 2017-03-07.
  8. ^ "What is a Title Loan, Requirements and Calculation?". WeLoans. Retrieved 2023-02-16.
  9. ^ "Defining and Detecting Predatory Lending". Federal Reserve Bank of New York. January 2007. Retrieved 2017-03-07.
  10. ^ "Car Title Loans". Americans for Fairness in Lending. September 2007. Retrieved November 29, 2012.
  11. ^ "Title loan offices returning". The Concord Monitor. December 2012. Archived from the original on August 7, 2012. Retrieved December 3, 2012.
  12. ^ "Car title loan abuses to continue in Illinois". Illinois Asset Building Group. March 2012. Archived from the original on 2014-12-20. Retrieved December 3, 2012.
  13. ^ "DBO Continues Crackdown on Illegal Loans in Settlement with Auto Title Lender TitleMax of California, Inc". dfpi.ca.gov. 16 December 2019. Retrieved 29 December 2020.
  14. ^ "A Complex Portrait: An Examination of Small-Dollar Credit Consumers" (PDF). Federal Deposit Insurance Corporation. August 2012. Archived from the original (PDF) on September 28, 2012. Retrieved November 28, 2012.
  15. ^ Valenti, Joe (2016-10-06). "How Predatory Debt Traps Threaten Vulnerable Families". Center for American Progress. Retrieved 2026-01-21.
  16. ^ "Credit From the Corner Store". The Chicago Reader. June 2011. Retrieved November 29, 2012.
  17. ^ "What are my rights under the Military Lending Act?". Consumer Financial Protection Bureau. 2024-01-12. Archived from the original on 2017-07-06. Retrieved 2026-01-21.
  18. ^ "Report: More payday lending protections needed". The Navy Times. June 2012. Retrieved November 30, 2012.cite news: CS1 maint: deprecated archival service (link)
  19. ^ "States take on car title loans". Tampa Bay Times. March 2008. Archived from the original on 2008-03-09. Retrieved November 28, 2012.
  20. ^ "Auto-title loans are the credit of last resort, but are terms fair for borrowers?". The Center for Public Integrity. 15 July 2011. Retrieved November 29, 2012.
  21. ^ "Payday Lenders and Car Title Lenders Evade Existing Texas Lending Laws" (PDF). Texas Faith for Fair Lending. July 2011. Retrieved December 1, 2012.
  22. ^ "Stop payday and auto title loan abuse in Texas". Texas Fair Lending Alliance. March 2008. Retrieved November 29, 2012.
  23. ^ "Auto Title Loans Market Practices and Borrowers' Experiences" (PDF). The Pew Charitable Trusts. March 2015. Retrieved 24 August 2015.
 

 

For other uses, see Car (disambiguation).
"Passenger car" and "Automobile" redirect here. For other uses, see Passenger car (disambiguation), Automobile (disambiguation), and Passenger railroad car.

 

Car
The Ford Model T, produced from 1908 to 1927, is widely credited with being the first mass-affordable automobile, and it remains one of the best-selling cars of all time.
Classification Vehicle
Industry Various
Application Transportation
Fuel source
Powered Yes
Self-propelled Yes
Wheels 3–6, most often 4
Axles 2, less commonly 3
Inventor Carl Benz
Invented 1886 (140 years ago) (1886)

A car, or an automobile, is a motor vehicle with wheels. Most definitions of cars state that they run primarily on roads, seat 1-8 people, have four wheels, and mainly transport people rather than cargo.[1][2] There are over 1.6 billion cars in use worldwide as of 2025.

The French inventor Nicolas-Joseph Cugnot built the first steam-powered road vehicle in 1769, while the Swiss inventor François Isaac de Rivaz designed and constructed the first internal combustion-powered automobile in 1808. The modern car—a practical, marketable automobile for everyday use—was invented in 1886, when the German inventor Carl Benz patented his Benz Patent-Motorwagen. Commercial cars became widely available during the 20th century. The 1901 Oldsmobile Curved Dash and the 1908 Ford Model T, both American cars, are widely considered the first mass-produced[3][4] and mass-affordable[5][6][7] cars, respectively. Cars were rapidly adopted in the US, where they replaced horse-drawn carriages.[8] In Europe and other parts of the world, demand for automobiles did not increase until after World War II.[9] In the 21st century, car usage is still increasing rapidly, especially in China, India, and other newly industrialised countries.[10][11]

Cars have controls for driving, parking, passenger comfort, and a variety of lamps. Over the decades, additional features and controls have been added to vehicles, making them progressively more complex. These include rear-reversing cameras, air conditioning, navigation systems, and in-car entertainment. Most cars in use in the early 2020s are propelled by an internal combustion engine, fueled by the combustion of fossil fuels. Electric cars, which were invented early in the history of the car, became commercially available in the 2000s and widespread in the 2020s. The transition from fossil-fuel-powered cars to electric cars is a central feature of most climate change mitigation scenarios.[12]

There are costs and benefits to car use. The costs to the individual include acquiring the vehicle, interest payments (if the car is financed), repairs and maintenance, fuel, depreciation, driving time, parking fees, taxes, and insurance.[13] The costs to society include resources used to produce cars and fuel, maintaining roads, land-use, road congestion, air pollution, noise pollution, public health, and disposing of the vehicle at the end of its life. Traffic collisions are the largest cause of injury-related deaths worldwide.[14] Personal benefits include on-demand transportation, mobility, independence, and convenience.[15][page needed] Societal benefits include economic benefits, such as job and wealth creation from the automotive industry, transportation provision, and societal wellbeing from leisure and travel opportunities. People's ability to move flexibly from place to place has far-reaching implications for society.[16]

Etymology

[edit]

The English word car is believed to originate from Latin carrus/carrum "wheeled vehicle" or (via Old North French) Middle English carre "two-wheeled cart", both of which in turn derive from Gaulish karros "chariot".[17][18] It originally referred to any wheeled horse-drawn vehicle, such as a cart, carriage, or wagon.[19] The word also occurs in other Celtic languages.[20]

"Motor car", attested from 1895, is the usual formal term in British English.[2] "Autocar", a variant likewise attested from 1895 and literally meaning "self-propelled car", is now considered archaic.[21] "Horseless carriage" is attested from 1895.[22]

"Automobile", a classical compound derived from Ancient Greek autós (αὐτός) "self" and Latin mobilis "movable", entered English from French and was first adopted by the Automobile Club of Great Britain in 1897.[23] It fell out of favour in Britain and is now used chiefly in North America,[24] where the abbreviated form "auto" commonly appears as an adjective in compound formations like "auto industry" and "auto mechanic".[25][26]

History

[edit]
Main article: History of the automobile
Steam machine of Verbiest, in 1678 (Ferdinand Verbiest)
Cugnot's 1771 fardier à vapeur, as preserved at the Musée des Arts et Métiers, Paris
Carl Benz, the inventor of the modern car
The original Benz Patent-Motorwagen, the first modern car, built in 1885 and awarded the patent for the concept
Bertha Benz, the first long distance driver
The Flocken Elektrowagen was the first four-wheeled electric car
Stuttgart, a cradle of the car[27][28] with Gottlieb Daimler and Wilhelm Maybach working there at the Daimler Motoren Gesellschaft and place of the modern day headquarters of Mercedes-Benz Group and Porsche

In 1649, Hans Hautsch of Nuremberg built a clockwork-driven carriage.[29][30] The first steam-powered vehicle was designed by Ferdinand Verbiest, a Flemish member of a Jesuit mission in China around 1672. It was a 65-centimetre-long (26 in) scale-model toy for the Kangxi Emperor that was unable to carry a driver or a passenger.[15][31][32] It is not known with certainty if Verbiest's model was successfully built or run.[32]

Nicolas-Joseph Cugnot is widely credited with building the first full-scale, self-propelled mechanical vehicle in about 1769; he created a steam-powered tricycle.[33] He also constructed two steam tractors for the French Army, one of which is preserved in the French National Conservatory of Arts and Crafts.[33] His inventions were limited by problems with water supply and maintaining steam pressure.[33] In 1801, Richard Trevithick built and demonstrated his Puffing Devil road locomotive, believed by many to be the first demonstration of a steam-powered road vehicle. It was unable to maintain sufficient steam pressure for long periods and was of little practical use.

The development of external combustion (also known as steam) engines is detailed in the history of the car. Still, it is often treated separately from the development of cars in their modern understanding. A variety of steam-powered road vehicles were used during the first part of the 19th century, including steam cars, steam buses, phaetons, and steam rollers. In the United Kingdom, sentiment against them led to the Locomotive Acts of 1865.

In 1807, Nicéphore Niépce and his brother Claude created what was probably the world's first internal combustion engine (which they called a Pyréolophore), but installed it in a boat on the river Saone in France.[34] Coincidentally, in 1807, the Swiss inventor François Isaac de Rivaz designed his own "de Rivaz internal combustion engine", and used it to develop the world's first vehicle to be powered by such an engine. The Niépces' Pyréolophore was fuelled by a mixture of Lycopodium powder (dried spores of the Lycopodium plant), finely crushed coal dust, and resin that were mixed with oil, whereas de Rivaz used a mixture of hydrogen and oxygen.[34] Neither design was successful, as was the case with others, such as Samuel Brown, Samuel Morey, and Etienne Lenoir,[35] who each built vehicles (usually adapted carriages or carts) powered by internal combustion engines.[36]

In November 1881, French inventor Gustave Trouvé demonstrated a three-wheeled car powered by electricity at the International Exposition of Electricity.[37] Although several other German engineers (including Gottlieb Daimler, Wilhelm Maybach, and Siegfried Marcus) were working on cars at about the same time, the year 1886 is regarded as the birth year of the modern car—a practical, marketable automobile for everyday use—when the German Carl Benz patented his Benz Patent-Motorwagen; he is generally acknowledged as the inventor of the car.[36][38][39]

In 1879, Benz was granted a patent for his first engine, which had been designed in 1878. Many of his other inventions made the internal combustion engine feasible for powering a vehicle. His first Motorwagen was built in 1885 in Mannheim, Germany. He was awarded the patent for his invention upon his application on 29 January 1886 (under the auspices of his major company, Benz & Cie., founded in 1883). Benz began promotion of the vehicle on 3 July 1886, and about 25 Benz vehicles were sold between 1888 and 1893, when his first four-wheeler was introduced along with a cheaper model. They were also powered with four-stroke engines of his own design. Emile Roger of France, already producing Benz engines under license, now added the Benz car to his product line. Because France was more open to early cars, more were initially built and sold in France through Roger than Benz sold in Germany. In August 1888, Bertha Benz, the wife and business partner of Carl Benz, undertook the first road trip by car, to prove the road-worthiness of her husband's invention.[40]

In 1896, Benz designed and patented the first internal-combustion flat engine, called boxermotor. During the last years of the 19th century, Benz was the largest car company in the world with 572 units produced in 1899 and, because of its size, Benz & Cie. became a joint-stock company. The first motor car in central Europe and one of the first factory-made cars in the world was produced by the Czech company Nesselsdorfer Wagenbau (later renamed to Tatra) in 1897, the Präsident automobil.

Daimler and Maybach founded Daimler Motoren Gesellschaft (DMG) in Cannstatt in 1890, and sold their first car in 1892 under the brand name Daimler. It was a horse-drawn stagecoach built by another manufacturer, which they retrofitted with an engine of their design. By 1895, about 30 vehicles had been built by Daimler and Maybach, either at the Daimler works or at the Hotel Hermann, where they set up shop after disputes with their backers. Benz, Maybach, and the Daimler team seem to have been unaware of each other's early work. They never worked together; by the time of the merger of the two companies, Daimler and Maybach were no longer part of DMG. Daimler died in 1900, and later that year, Maybach designed an engine named Daimler-Mercedes that was installed in a specially ordered model built to specifications set by Emil Jellinek. This was a limited production run of vehicles for Jellinek to race and market in his country. Two years later, in 1902, a new model of the DMG car was produced and named Mercedes after the Maybach engine, which generated 35 hp. Maybach left DMG shortly thereafter and opened his own business. Rights to the Daimler brand name were sold to other manufacturers.

In 1890, Émile Levassor and Armand Peugeot of France began producing vehicles with Daimler engines, and so laid the foundation of the automotive industry in France. In 1891, Auguste Doriot and his Peugeot colleague Louis Rigoulot completed the longest trip by a petrol-driven vehicle when their self-designed and built Daimler-powered Peugeot Type 3 completed 2,100 kilometres (1,300 mi) from Valentigney to Paris and Brest and back again. They were attached to the first Paris–Brest–Paris bicycle race, but finished six days after the winning cyclist, Charles Terront.

The first design for an American car with a petrol internal combustion engine was made in 1877 by George Selden of Rochester, New York. Selden applied for a patent for a car in 1879, but the patent application expired because the vehicle was never built. After a delay of 16 years and a series of attachments to his application, on 5 November 1895, Selden was granted a US patent (U.S. patent 549,160) for a two-stroke car engine, which hindered, more than encouraged, development of cars in the United States. His patent was challenged by Henry Ford and others, and overturned in 1911.

In 1893, the first running, petrol-driven American car was built and road-tested by the Duryea brothers of Springfield, Massachusetts. The first public run of the Duryea Motor Wagon took place on 21 September 1893, on Taylor Street in Metro Center Springfield.[41][42] Studebaker, subsidiary of a long-established wagon and coach manufacturer, started to build cars in 1897[43]: 66  and commenced sales of electric vehicles in 1902 and petrol vehicles in 1904.[44]

In Britain, there had been several attempts to build steam cars with varying degrees of success, with Thomas Rickett even attempting a production run in 1860.[45] Santler from Malvern is recognised by the Veteran Car Club of Great Britain as having made the first petrol-driven car in the country in 1894,[46] followed by Frederick William Lanchester in 1895, but these were both one-offs.[46] The first production vehicles in Great Britain came from the Daimler Company, a company founded by Harry J. Lawson in 1896, after purchasing the right to use the name of the engines. Lawson's company made its first car in 1897, and they bore the name Daimler.[46]

In 1892, German engineer Rudolf Diesel was granted a patent for a "New Rational Combustion Engine". In 1897, he built the first diesel engine.[36] Steam-, electric-, and petrol-driven vehicles competed for a few decades, with petrol internal combustion engines achieving dominance in the 1910s. Although various pistonless rotary engine designs have attempted to compete with the conventional piston and crankshaft design, only Mazda's version of the Wankel engine has had more than very limited success. All in all, it is estimated that over 100,000 patents have contributed to the modern automobile and motorcycle.[47]

Mass production

[edit]
See also: Automotive industry
Ransom E. Olds founded Olds Motor Vehicle Company (Oldsmobile) in 1897.
Ford Motor Company automobile assembly line in the 1920s
The Toyota Corolla is the best-selling car of all-time.

Large-scale, production-line manufacturing of affordable cars was started by Ransom Olds in 1901 at his Oldsmobile factory in Lansing, Michigan, and based upon stationary assembly line techniques pioneered by Marc Isambard Brunel at the Portsmouth Block Mills, England, in 1802. The assembly line style of mass production and interchangeable parts had been pioneered in the US by Thomas Blanchard in 1821, at the Springfield Armory in Springfield, Massachusetts.[48] This concept was greatly expanded by Henry Ford, beginning in 1913 with the world's first moving assembly line for cars at the Highland Park Ford Plant.

As a result, Ford's cars came off the line in 15-minute intervals, much faster than previous methods, increasing productivity eightfold while using less labor (from 12.5 manhours to 1 hour 33 minutes).[49] It was so successful, paint became a bottleneck. Only Japan black would dry fast enough, forcing the company to drop the variety of colours available before 1913, until fast-drying Duco lacquer was developed in 1926. This is the source of Ford's apocryphal remark, "any color as long as it's black".[49] In 1914, an assembly line worker could buy a Model T with four months' pay.[49]

Ford's complex safety procedures—especially assigning each worker to a specific location rather than allowing them to roam—dramatically reduced injury rates.[50] The combination of high wages and high efficiency is called "Fordism" and was copied by most major industries. The efficiency gains from the assembly line also coincided with the US's economic rise. The assembly line forced workers to move at a certain pace with very repetitive motions, which led to more output per worker, while other countries used less productive methods.

In the automotive industry, its success was dominant and quickly spread worldwide, with the founding of Ford France and Ford Britain in 1911, Ford Denmark in 1923, and Ford Germany in 1925; in 1921, Citroën was the first native European manufacturer to adopt the production method. Soon, companies had to have assembly lines or risk going bankrupt; by 1930, 250 companies that did not have assembly lines disappeared.[49]

The development of automotive technology was rapid, due in part to the hundreds of small manufacturers competing to gain the world's attention. Key developments included electric ignition and the electric self-starter (both by Charles Kettering, for the Cadillac Motor Company in 1910–1911), independent suspension, and four-wheel brakes.

Since the 1920s, nearly all cars have been mass-produced to meet market needs, so marketing plans have often heavily influenced car design. It was Alfred P. Sloan who established the idea of different makes of cars produced by one company, called the General Motors Companion Make Program, so that buyers could "move up" as their fortunes improved.

Reflecting the rapid pace of change, makers shared parts with one another, resulting in lower costs across all price ranges. For example, in the 1930s, LaSalles, sold by Cadillac, used cheaper mechanical parts made by Oldsmobile; in the 1950s, Chevrolet shared bonnet, doors, roof, and windows with Pontiac; by the 1990s, corporate powertrains and shared platforms (with interchangeable brakes, suspension, and other parts) were common. Even so, only major makers could afford high costs, and even companies with decades of production, such as Apperson, Cole, Dorris, Haynes, or Premier, could not manage: of some two hundred American car makers in existence in 1920, only 43 survived in 1930, and with the Great Depression, by 1940, only 17 of those were left.[49]

In Europe, much the same would happen. Morris set up its production line at Cowley in 1924, and soon outsold Ford, while beginning in 1923 to follow Ford's practice of vertical integration, buying Hotchkiss' British subsidiary (engines), Wrigley (gearboxes), and Osberton (radiators), for instance, as well as competitors, such as Wolseley: in 1925, Morris had 41 per cent of total British car production. Most British small-car assemblers, from Abbey to Xtra, had gone under. Citroën did the same in France, coming to cars in 1919; between them and other cheap cars in reply such as Renault's 10CV and Peugeot's 5CV, they produced 550,000 cars in 1925, and Mors, Hurtu, and others could not compete.[49] Germany's first mass-manufactured car, the Opel 4PS Laubfrosch (Tree Frog), came off the line at Rüsselsheim in 1924, soon making Opel the top car builder in Germany, with 37.5 per cent of the market.[49]

In Japan, car production was very limited before World War II. Only a handful of companies produced vehicles in limited numbers, and these were small, three-wheeled for commercial use, like Daihatsu, or the result of partnerships with European companies, like Isuzu building the Wolseley A-9 in 1922. Mitsubishi was also partnered with Fiat and built the Mitsubishi Model A based on a Fiat vehicle. Toyota, Nissan, Suzuki, Mazda, and Honda began as companies producing non-automotive products before the war, then switched to car production in the 1950s. Kiichiro Toyoda's decision to take Toyoda Loom Works into automobile manufacturing would eventually lead to the formation of Toyota Motor Corporation, the world's largest automobile manufacturer. Subaru, meanwhile, was formed from a conglomerate of six companies that banded together as Fuji Heavy Industries, as a result of having been broken up under keiretsu legislation.

Components and design

[edit]

Propulsion and fuels

[edit]
See also: Alternative fuel vehicle
2011 Nissan Leaf electric car
The weight of the low battery stabilises the car.[51] This is a dual-motor, four-wheel-drive layout, but many cars only have one motor.

Fossil fuels

[edit]

Most cars in use in the mid 2020s run on petrol burnt in an internal combustion engine (ICE). Some cities ban older, more polluting petrol-driven cars, and some countries plan to ban sales in the future. However, some environmental groups say this phase-out of fossil fuel vehicles must be brought forward to limit climate change. Production of petrol-fuelled cars peaked in 2017.[52][53]

Other hydrocarbon fossil fuels also burnt by deflagration (rather than detonation) in ICE cars include diesel, autogas, and CNG. Removal of fossil fuel subsidies,[54][55] concerns about oil dependence, tightening environmental laws and restrictions on greenhouse gas emissions are propelling work on alternative power systems for cars. This includes hybrid vehicles, plug-in electric vehicles, and hydrogen vehicles. As of 2025 one in four cars sold is electric but,[56] despite rapid growth, less than one in twenty cars on the world's roads were fully electric and plug-in hybrid cars by the end of 2024.[57] Cars for racing or speed records have sometimes employed jet or rocket engines, but these are impractical for common use. Oil consumption has increased rapidly in the 20th and 21st centuries because there are more cars; the 1980s oil glut even fuelled the sales of low-economy vehicles in OECD countries.[citation needed]

Batteries

[edit]
Main article: Electric vehicle battery
See also: Electric car § Batteries, and Automotive battery

In almost all hybrid (even mild hybrid) and pure electric cars, regenerative braking recovers and returns to a battery some energy which would otherwise be wasted by friction brakes getting hot.[58] Although all cars must have friction brakes (front disc brakes and either disc or drum rear brakes[59]) for emergency stops, regenerative braking improves efficiency, particularly in city driving.[60]

User interface

[edit]
Main article: Car controls
In the Ford Model T the left-side hand lever sets the rear wheel parking brakes and puts the transmission in neutral. The lever to the right controls the throttle. The lever on the left of the steering column is for ignition timing. The left foot pedal changes the two forward gears while the centre pedal controls reverse. The right pedal is the brake.

Cars are equipped with controls for driving, passenger comfort, and safety, normally operated by a combination of feet and hands, and occasionally by voice in 21st-century cars. These controls include a steering wheel, pedals for operating the brakes and controlling the car's speed (and, in a manual transmission car, a clutch pedal), a shift lever or stick for changing gears, and several buttons and dials for turning on lights, ventilation, and other functions. Modern cars' controls are now standardised, such as the location of the accelerator and brake, but this was not always the case. Controls are evolving in response to new technologies, for example, the electric car and the integration of mobile communications.

Some of the original controls are no longer required. For example, all cars once had controls for the choke valve, clutch, ignition timing, and a crank instead of an electric starter. However, new controls have also been added to vehicles, making them more complex. These include air conditioning, navigation systems, and in-car entertainment. Another trend is the replacement of physical knobs and switches with secondary controls, such as touchscreen controls, such as BMW's iDrive and Ford's MyFord Touch. Another change is that while early cars' pedals were physically linked to the brake mechanism and throttle, in the early 2020s, cars have increasingly replaced these physical linkages with electronic controls.

Electronics and interior

[edit]
Panel for fuses and circuit breakers

Cars are typically equipped with interior lighting which can be toggled manually or be set to light up automatically with doors open, an entertainment system which originated from car radios, sideways windows which can be lowered or raised electrically (manually on earlier cars), and one or multiple auxiliary power outlets for supplying portable appliances such as mobile phones, portable fridges, power inverters, and electrical air pumps from the on-board electrical system.[61][62][a] More costly upper-class and luxury cars are equipped with features earlier such as massage seats and collision avoidance systems.[63][64]

Dedicated automotive fuses and circuit breakers prevent damage from electrical overload.

Lighting

[edit]
Main article: Automotive lighting
Audi A4 daytime running lights

Cars are typically fitted with multiple types of lights. These include headlights, which are used to illuminate the way ahead and make the car visible to other users, so that the vehicle can be used at night; in some jurisdictions, daytime running lights; red brake lights to indicate when the brakes are applied; amber turn signal lights to indicate the turn intentions of the driver; white-coloured reverse lights to illuminate the area behind the car (and indicate that the driver will be or is reversing); and on some vehicles, additional lights (e.g., side marker lights) to increase the visibility of the car. Interior ceiling lights in the car are usually fitted for the driver and passengers. Some vehicles also have a boot light and, more rarely, an engine compartment light.

Weight and size

[edit]
A Chevrolet Suburban extended-length SUV weighs 3,300 kilograms (7,200 lb) (gross weight).[65]

During the late 20th and early 21st century, cars increased in weight due to batteries,[66] modern steel safety cages, anti-lock brakes, airbags, and "more-powerful—if more efficient—engines"[67] and, as of 2019, typically weigh between 1 and 3 tonnes (1.1 and 3.3 short tons; 0.98 and 2.95 long tons).[68] Heavier cars are safer for the driver from a crash perspective, but more dangerous for other vehicles and road users.[67] The weight of a car influences fuel consumption and performance, with more weight resulting in increased fuel consumption and decreased performance. The Wuling Hongguang Mini EV, a typical city car, weighs about 700 kilograms (1,500 lb). Heavier cars include SUVs and extended-length SUVs like the Suburban. Cars have also become wider.[69]

Some places tax heavier cars more:[69] as well as improving pedestrian safety, this can encourage manufacturers to use materials such as recycled aluminium instead of steel.[70] It has been suggested that one benefit of subsidising charging infrastructure is that cars can use lighter batteries.[71]

Seating and body style

[edit]
See also: Car body style, Car classification, Truck classification, and Vehicle size class

Most cars are designed to carry multiple occupants, often with four or five seats. Cars with five seats typically seat two passengers in the front and three in the rear. Full-size cars and large sport utility vehicles can often carry six, seven, or more occupants, depending on seat arrangement. On the other hand, sports cars are most often designed with only two seats. Utility vehicles like pickup trucks combine seating with extra cargo or utility functionality. The differing needs for passenger capacity and their luggage or cargo space has resulted in the availability of a large variety of body styles to meet individual consumer requirements that include, among others, the sedan/saloon, hatchback, station wagon/estate, coupe, and minivan.

Safety

[edit]
Main articles: Car safety, Traffic collision, Low-speed vehicle, and Epidemiology of motor vehicle collisions
Result of a serious car collision

Traffic collisions are the largest cause of injury-related deaths worldwide.[14] Mary Ward became one of the first documented car fatalities in 1869 in Parsonstown, Ireland,[72] and Henry Bliss one of the US's first pedestrian car casualties in 1899 in New York City.[73] There are now standard tests for safety in new cars, such as the Euro and US NCAP tests,[74] and insurance-industry-backed tests by the Insurance Institute for Highway Safety (IIHS).[75] However, not all such tests consider the safety of people outside the car, such as drivers of other cars, pedestrians and cyclists.[76] Some countries are tightening safety regulations for new cars, for example to mandate data recorders and automated braking.[77]

Costs and benefits

[edit]
Main articles: Economics of car usage, Car costs, and Effects of the car on societies
Road congestion is an issue in many major cities (pictured is Chang'an Avenue in Beijing).[78]

The costs of car usage, which may include the cost of: acquiring the vehicle, repairs and auto maintenance, fuel, depreciation, driving time, parking fees, taxes, and insurance,[13] are weighed against the cost of the alternatives, and the value of the benefits—perceived and real—of vehicle usage. The benefits may include on-demand transportation, mobility, independence, and convenience,[15][page needed] and emergency power.[79] During the 1920s, cars had another benefit: "[c]ouples finally had a way to head off on unchaperoned dates, plus they had a private space to snuggle up close at the end of the night."[80]

Similarly the costs to society of car use may include; maintaining roads, land use, air pollution, noise pollution, road congestion, public health, health care, and of disposing of the vehicle at the end of its life; and can be balanced against the value of the benefits to society that car use generates. Societal benefits may include economic benefits, such as job and wealth creation, from car production and maintenance, transportation provision, societal wellbeing derived from leisure and travel opportunities, and revenue generation from the tax opportunities. The ability of humans to move flexibly from place to place has far-reaching implications for the nature of societies.[16]

Environmental effects

[edit]
See also: Exhaust gas, Waste tyres, Environmental effects of transport, Externalities of automobiles, Noise pollution, Environmental aspects of the electric car, and Vehicle recycling
Trucks' share of US vehicles produced has tripled since 1975. Though vehicle fuel efficiency has increased within each category, the overall trend toward less efficient types of vehicles has offset some of the benefits of greater fuel economy and reductions in pollution and carbon dioxide emissions.[81] Without the shift towards SUVs, energy use per unit distance could have fallen 30% more than it did from 2010 to 2022.[82]
close-up of 2 exhaust pipes with whitish smoke
Car exhaust gas is one type of pollution

Car production and use have a large number of environmental impacts: it causes local air pollution plastic pollution and contributes to greenhouse gas emissions and climate change.[83] Cars and vans caused 10% of energy-related carbon dioxide emissions in 2022.[84] As of 2023, electric cars produce about half the emissions over their lifetime as diesel and petrol cars. This is set to improve as countries produce more of their electricity from low-carbon sources.[85] Cars consume almost a quarter of world oil production as of 2019.[52] Cities planned around cars are often less dense, which leads to further emissions, as they are less walkable, for instance.[83] A growing demand for large SUVs is driving up emissions from cars.[86]

Cars are a major cause of air pollution,[87] which stems from exhaust gas in diesel and petrol cars and from dust from brakes, tyres, and road wear. Larger cars pollute more.[88] Heavy metals and microplastics (from tyres) are also released into the environment, during production, use, and at the end of life. Mining related to car manufacturing and oil spills both cause water pollution.[83]

Animals and plants are often negatively affected by cars through habitat destruction and fragmentation caused by the road network, as well as pollution. Animals are also killed every year on roads by cars, referred to as roadkill.[83] More recent road developments are including significant environmental mitigation in their designs, such as green bridges (designed to allow wildlife crossings) and creating wildlife corridors.

Governments use fiscal policies, such as road tax, to discourage the purchase and use of more polluting cars;[89] Vehicle emission standards ban the sale of new highly pollution cars.[90] Many countries plan to stop selling fossil cars altogether between 2025 and 2050.[91] Various cities have implemented low-emission zones, banning old fossil fuel and Amsterdam is planning to ban fossil fuel cars completely.[92][93] Some cities make it easier for people to choose other forms of transport, such as cycling.[92] Many Chinese cities limit licensing of fossil fuel cars.[94]

Social issues

[edit]

Mass production of personal motor vehicles in the United States and other developed countries with extensive territories, such as Australia, Argentina, and France, vastly increased individual and group mobility and greatly expanded economic development in urban, suburban, exurban, and rural areas.[citation needed] Growth in the popularity of cars and commuting has led to traffic congestion.[95] Moscow, Istanbul, Bogotá, Mexico City and São Paulo were the world's most congested cities in 2018 according to INRIX, a data analytics company.[96]

Access to cars

[edit]

In the United States, the transport divide and car dependency resulting from domination of car-based transport systems presents barriers to employment in low-income neighbourhoods,[97] with many low-income individuals and families forced to run cars they cannot afford in order to maintain their income.[98] Dependency on automobiles by African Americans may result in exposure to the hazards of driving while black and other types of racial discrimination related to buying, financing and insuring them.[99]

Health impact

[edit]
Further information: Motor vehicle pollution and pregnancy

Air pollution from cars increases the risk of lung cancer and heart disease. It can also harm pregnancies: more children are born too early or with lower birth weight.[83] Children are extra vulnerable to air pollution, as their bodies are still developing and air pollution in children is linked to the development of asthma, childhood cancer, and neurocognitive issues such as autism.[100][83] The growth in popularity of the car allowed cities to sprawl, therefore encouraging more travel by car, resulting in inactivity and obesity, which in turn can lead to increased risk of a variety of diseases.[101] When places are designed around cars, children have fewer opportunities to go places by themselves and lose opportunities to become more independent.[102][83]

Emerging car technologies

[edit]

Intensive development of conventional battery electric vehicles is continuing into the 2020s,[103] for example lithium iron phosphate batteries are safer and cheaper.[104] Sensors such as lidar are more used.[105] Other car technologies that are under development include wireless charging.[106] Software is increasing and may have many new uses, for example automatically not hitting pedestrians.[107]

New materials which may replace steel car bodies include aluminium,[108] fiberglass, carbon fiber, biocomposites, and carbon nanotubes.[109] Telematics technology is allowing more and more people to share cars, on a pay-as-you-go basis, through car share and carpool schemes. Communication is also evolving due to connected car systems.[110] Open-source cars are not widespread.[111] Microwave weapons which can disable cars are being tested.[112]

Self-driving car

[edit]
Main article: Self-driving car
A robotic Volkswagen Passat shown at Stanford University is a driverless car.

Fully self-driving vehicles, also known as autonomous cars, already exist as robotaxis in some locations.[113][114] Laws for the regulation of self-driving cars will need updating before widespread deployment can happen.[115][116]

Car sharing

[edit]

Car-share arrangements and carpooling are also increasingly popular, in the US and Europe.[117] Services like car sharing offer residents to "share" a vehicle rather than own a car in already congested neighbourhoods.[118]

Industry

[edit]
Main article: Automotive industry
A car being assembled in a factory

The automotive industry designs, develops, manufactures, markets, and sells the world's motor vehicles, more than three-quarters of which are cars. In 2020, there were 56 million cars manufactured worldwide,[119] down from 67 million the previous year.[120] The automotive industry in China produces by far the most (20 million in 2020), followed by Japan (seven million), then Germany, South Korea, and India.[121] The largest market is China, followed by the US.

There are around 1.644 billion cars in use worldwide as of January 2025;[122] they burn over a trillion litres (0.26×10^12 US gal; 0.22×10^12 imp gal) of petrol and diesel fuel yearly, consuming about 50 exajoules (14,000 TWh) of energy.[123] The number of cars is increasing rapidly in China and India.[124] In the opinion of some, urban transport systems based around the car have proved unsustainable, consuming excessive energy, affecting the health of populations, and delivering a declining level of service despite increasing investment. Many of these negative effects fall disproportionately on those social groups who are also least likely to own and drive cars.[125][126] The sustainable transport movement focuses on solutions to these problems. The car industry is also facing increasing competition from the public transport sector, as some people re-evaluate their use of private vehicles. In July 2021, the European Commission introduced the "Fit for 55" legislation package, outlining crucial directives for the automotive sector's future.[127][128] According to this package, by 2035, all newly sold cars in the European market must be Zero-emissions vehicles.[129][130][131]

Alternatives

[edit]
Main article: Alternatives to car use
The Vélib' in Paris, France, is the largest bikesharing system outside China.

Established alternatives for some aspects of car use include public transport such as busses, trolleybusses, trains, subways, tramways, light rail, cycling, and walking. Bicycle sharing systems have been established in China and many European cities, including Copenhagen and Amsterdam. Similar programmes have been developed in large US cities.[132][133] Additional individual modes of transport, such as personal rapid transit could serve as an alternative to cars if they prove to be socially accepted.[134] A study which checked the costs and the benefits of introducing Low Traffic Neighbourhood in London found the benefits overpass the costs approximately by 100 times in the first 20 years and the difference is growing over time.[135]

Car motorsport

[edit]
Main article: Motorsport

Motorsport is a sport involving high speed racing and drifting. It includes various racing series such as Formula One, IndyCar Series, NASCAR, World Rally Championship and MotoGP.[136][137][138][139][140]

See also

[edit]
Main article: Outline of automobiles

Notes

[edit]
  1. ^ Auxiliary power outlets may be supplied continuously or only when the ignition is active depending on electrical wiring.

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