Roads that had been designed for horse transport began to deteriorate under the steadily increasing load of traffic. In 1906 local governments supplied 96 per cent. of the road funding. In 1927 the State governments supplied about 37 per cent., the Federal Government 10 per cent., and the local governments 53 per cent. While horse-drawn traffic prevailed, roads were a matter for local administration, but the motorcar brought the question into a broader jurisdiction.
The funding problem for building and maintaining roads suitable for motor cars was largely solved by the introduction of a tax on gas. By the end of 1929 all the states had introduced a gas tax varying from two to five cents per gallon that raised millions of dollars per year.
Roads (including wooden roads) had to be redesigned and rebuilt to accomodate the automobile, new road rules had to be introduced, standardized road signs erected, and methods of controlling traffic (like traffic lights) implemented in densely populated areas.
Vehicles required much higher road clearances than modern cars due to the poor state of roads and tracks, hence the large diameter skinny tires of the day which were effective at cutting through mud to reach more solid ground.
The car enabled people to travel much further afield than foot or horse had permitted. Touring vacations became popular, but motorists had to plan carefully as there were often long distances between petrol stations and breakdowns were fairly common. Tourist parks (Motels) and other facilities sprang up to service the needs of travelling motorists. Service station chains cashed in on the trend by supplying maps that highlighted their business locations, and then sold travellers food and drink as well as petrol and oil.
New makes of cars proliferated - from the low cost Model T Ford through to the expensive Duesenberg and even more expensive Rolls Royce. Most of the carmakers no longer exist or have been amalgamated but many of the old car names like Buick, Cadillac, Chevrolet, Dodge, Fiat, Ford, Lincoln, and Oldsmobile live on today. Others like the Auburn, Cole, Crow, Davis, Dixie, Durant, Elcar, Grant, King, Kline, Lafayette, Kurtz, Marmon, Mercer, Overland, Peerless, Pilot, Roamer, Saxon, Stearns, Velie, Wescott and Winton are only seen in vintage car shows today.
One of the biggest motoring events of 1927 was the release of the "new Ford", the Model A, which replaced the long-standing Model T after 18 years of production.
Most of the early cars were open tourers (convertibles) but it didn't take long before they were enclosed and fitted with car heaters to improve passenger comfort. Companies that had formerly produced horse drawn vehicles became vehicle manufacturers or built bodies on chassis produced by others. Many of the expensive cars were custom built for their wealthy owners, who often had a chauffeur/mechanic to drive them.
Many of the automotive innovations that we think of as being modern were in fact introduced in the 1920's. Things like electric powered cars, four wheel drive, front wheel drive, and even hybrid fuel/electric cars.
Car advertisements became more sophisticated as psychology was employed by copywriters. Previously, ads had focused on specifications, engine horsepower, and features - but the late 1920's ushered in the style of advertising that appealed to people's emotions rather than intellect. Automobile manufacturers also targeted women drivers by advertising in women's magazines and by making cars more appealing to women. They did this by increasing the range of colors, improving the quality and style of upholstery and interior linings, and by making cars easier to drive and maintain.
Many of the car paint colors and color schemes were based on English horse-drawn coach livery, and even chauffeur driven car designs resembled horse-drawn coaches. Never before had cars been so colorful and attractive, with flowing curves and rakish lines. Bright paint colors and dual tone color schemes were features of many 1920s cars - with the exception of Fords which for many years only came in black.
Vehicle comfort levels improved with the introduction of heaters, balloon tires, and improved suspensions including better shock absorbers.
It didn't take long for Insurance companies who specialized in building and life insurance to realize that the advent of the motor car opened up a whole new market of car insurance. Cars were very expensive items and owners also realized they needed protection from theft and damage. Car insurance rates were very high initially which generated a lot of complaints from motorists.
The wealthy disposed of some of their excess wealth in the late 1920's by splurging on expensive ($15,000-$50,000) european cars like Mercedes and Hispano-Suiza which they imported into America. America too had its luxury cars like the Cadillac and Packard that were favored by the big name movie stars and wealthy individuals.