user57852: The vehicle is an AMC eagle, they come with a diagnostic port 
I have made a diagnostic tool that lights led lights when signals turn on and off, but it has to be wired in and is bulky. I am wondering if it would be possible to have an arduino plugged in and running off the 12v battery supply (with step-down to 5v) and have it catch the signals and send them over Bluetooth to a computer. Does this sound like it is within the scope of an arduino or am I asking too much? Or is there a better and easier way to do this? 

user313: Yes, it is possible. The 12v signals would have to be conditioned for the Arduino to receive them (0 - 12v or maybe 0 - 12-14.5v?). Then the Bluetooth side would be the same as any other Bluetooth data transmission.
So your question comes down to: Is this a fun project that's worth the effort you put into it for the learning experience? Or is this meant to answer a need, and the most practical means to that end is the best means?
Ex: I wanted to know how long / what kind of driving would it take to get my car's oil to full temp (~100C), starting from dead-cold in the winter? I had a thermo-logger I'd built for another experiment, so I taped a sensor to my oil filter (yeah, not the greatest, but quick and dirty) and lead a cable outside the hood, through the driver's window, to the experimental PC board on my dash-board. It wasn't a miserable failure but nothing to be proud of, either.
The solution I settled on was a USD$12.00 OBD port sender and an iPhone app. The results were much better, and while I didn't have the built-it-myself experience, I got the data and the answers I needed.

57852: <p>The vehicle is an AMC eagle, they come with a diagnostic port <img src="https://i.stack.imgur.com/RrPy8.gif" alt="diagnostic port">
I have made a diagnostic tool that lights led lights when signals turn on and off, but it has to be wired in and is bulky. I am wondering if it would be possible to have an arduino plugged in and running off the 12v battery supply (with step-down to 5v) and have it catch the signals and send them over Bluetooth to a computer. Does this sound like it is within the scope of an arduino or am I asking too much? Or is there a better and easier way to do this? <img src="https://i.stack.imgur.com/MIMtm.jpg" alt="diagnostic tool I made "></p>
 313: <p>Yes, it is possible. The 12v signals would have to be conditioned for the Arduino to receive them (0 - 12v or maybe 0 - 12-14.5v?). Then the Bluetooth side would be the same as any other Bluetooth data transmission.</p>

<p>So your question comes down to: Is this a fun project that's worth the effort you put into it for the learning experience? Or is this meant to answer a need, and the most practical means to that end is the best means?</p>

<p>Ex: I wanted to know how long / what kind of driving would it take to get my car's oil to full temp (~100C), starting from dead-cold in the winter? I had a thermo-logger I'd built for another experiment, so I taped a sensor to my oil filter (yeah, not the greatest, but quick and dirty) and lead a cable outside the hood, through the driver's window, to the experimental PC board on my dash-board. It wasn't a <em>miserable</em> failure but nothing to be proud of, either.</p>

<p>The solution I settled on was a USD$12.00 OBD port sender and an iPhone app. The results were much better, and while I didn't have the built-it-myself experience, I got the data and the answers I needed.</p>
