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Is it likely that I should adjust the Scangauge's speed to match the vehicle's speedometer or is it more likely that the vehicle's speedometer is inaccurate?
I can just about guarantee that in a 2007 model year vehicle the speedometer is electronic and driven off the same data source that the Scangauge gets it's data. So it is virtually assured that your vehicle's speedometer is inaccurate.
Put another way, when the Scanguage says you're going 55MPH, it's getting that data from the same place the dashboard is.
Digital data representing the vehicle's speed is sent to both the dashboard and the Scanguage.
The Scanguage decodes this data in accordance with SAE specifications and displays it on a digital display. There is no room for error in that conversion process, it's simple math.
The speedometer, on the other hand, is taking this data and converting it to a pointer position for an analog display. The needle could be off a little bit in either direction, the needle positioning mechanism could be non-linear, the point is, whenever you convert from digital to analog you do have a greater potential for errors in the conversion, it's not perfect.
When you convert from digital to digital, barring some sort of hardware malfunction or a programming error, it's going to be 100% accurate. The chances that your Scanguage is suffering from either a hardware malfunction or a programming error are very, very small.
There is, of course, the analog-to-digital conversion which converts the vehicle speed into digital data, but any inaccuracies here would affect both the Scanguage reading and the analog speedometer reading in the same way.