Nowadays, with the increasing variety of vehicles drawback arises a way to manage and keep a watch on driving behavior of the folks. Several systems area unit projected however none is economical and straightforward to implement in world. so there's would like for development of value economical and real time system that may be enforced virtually with each automobile. Use of Smartphone is increasing as quickly as forest fires. Options accomplished with Smartphone will be utilized in higher manner in development of latest systems. OBD (On-Board diagnostics) device in association with the Smartphone application will be combined into one system to diagnose driving behavior. OBD device provides real time data About Engine management unit. At the side of driving behavior we are able to get data regarding fuel consumption rate etc. We have projected a client-server real time automobile observance system which might be employed by automobile dealing corporations to manage their rented cars and a knowledge-based framework for a driving help via Smartphone