Patent DRP 37435 for the Benz Patent Motor Car in 1886 is considered the birth date of the modern car. That year, in January, Karl Benz (pictured) applied for his “vehicle with gas operation” which included such features as a single-cylinder, four-stroke engine powered by gasoline; a carburetor; water-cooled radiator; and electric ignition.

During that same year, Gottlieb Daimler and engineer Wilhelm Maybach created the first “horseless” carriage by attaching Daimler’s engine to a coach. Benz and Daimler’s organizations would later merge to form Daimler-Benz (now DaimlerChrysler AG).

Shortly after Daimler’s death in 1900, his company’s largest distributor approached Maybach to develop the most advanced car of its time. That vehicle, named after the distributor's daughter Mercedes, became the template used by almost all modern cars.

History of the modern car (and the car in general) can also be found here, here, and here.

[Source: Mercedes-Benz]