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There are different types. Your basic, run-of-the-mill reader is simply a code reader, which can read basic DTCs, but won't give a PID/SID for further breakdown. Most can also clear codes, although they'll return if the fault isn't repaired. The more high end readers will give the SID and PID codes, then you get into actual diagnostic scanners... unlike the typical code readers you'll see at auto parts stores, a good diagnostic tool will have the various personality keys, and contain programming for the various specific makes and models. It'll be able to run functions, give commands, you can do things like running forced regenerations on diesel vehicles, and they get more elaborate as the cost increases... I have a Snap-On Modis with all of those features plus the Euro vehicle package, and it has a lab scope feature, which you won't find with these code readers and low end scanners.

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