The CAR-diac is a scan tool that reads diagnostic codes and real-time data from vehicles. It diagnoses check engine lights, displays operating data, and logs information. It communicates with a vehicle's Engine Control Unit via OBD-II to receive encoded data. Benefits include saving money on mechanic visits and monitoring driving habits. It is powered by an ARM Cortex-M3 microcontroller and interfaces with vehicles via an OBD-II to UART board through the diagnostic port.