They have become more efficient, and more useful then ever before. From the first cars in history to the cars of today, automobiles have changed transportation forever. Cars from the Stanley Steamer, the Duryea, and the Toyota, etc., have forever changed the way, people of then and now, we transport from one place to another
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In many ways, F1 is a continuous development sport. Here a comparison between an average 1950s F1 Car and a 2013 F1 Car.
1950 F1 car would have :
To sum it all up f1 cars has developed by being more powerful, more aerodynamic, more efficient, more safer, more computrised and less natural control, and more technical.
It hard to describe without pictures, see related link for a more descriptive detail of my answer above.
A small answer to an overwhelmingly huge question.
Formula 1 traditionally (since 1946) is a specification of engine displacement, weight, and vehicle size. From 1901 until WW2 the roots of Formula 1 were laid By "Grand Prix" racing. Why it is called that is complicated.
The first car did not "Develop" into a Formula 1 car.