The Benz Patent-Motorwagen (or motorcar), built in 1886, is widely regarded as the world's first automobile; that is, a vehicle designed to be propelled by an internal combustion engine. The original cost of the vehicle in 1885 was $1,000 (equivalent to $26,337 in 2015). The vehicle was awarded the German patent, number 37435, for which Karl Benz applied on January 29, 1886. Following official procedures, the date of the application became the patent date for the invention once the patent was granted, which occurred in November of that year. The Benz Patent-Motorwagen was a three-wheeled automobile with a rear-mounted engine. The vehicle contained many new inventions. It was constructed of steel tubing with woodwork panels. The steel-spoked wheels and solid rubber tires were Benz's own design. Steering was by way of a toothed rack that pivoted the unsprung front wheel. Fully elliptic springs were used at the back along with a live axle and chain drive on both sides. A simple belt system served as a single-speed transmission, varying torque between an open disc and drive disc.

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