A method is provided for processing and analyzing diagnostic and prognostic data in a vehicle ad-hoc network. Diagnostic and prognostic data is exchanged between a host vehicle and remote vehicles in the vehicle ad-hoc network. The received diagnostic and prognostic data is stored in a memory of the host vehicle. Redundancy is eliminated in the received diagnostic and prognostic data. The diagnostic and prognostic data is assigned to clusters. Anomalies are detected in the stored data utilizing clustering techniques that determine whether a cluster of diagnostic and prognostic data formed from the host vehicle substantially deviates from the clusters of diagnostic and prognostic data formed from the remote vehicles. A driver of a vehicle is notified if the cluster data from a host vehicle deviates significantly from the clusters from the remote vehicles.