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It is used as an easy access diagnostic port - also referred to as DLC1. The one on the inside of the cabin is known as a DCL3 connector and designed for a scanner. Both give you diagnostic information, but in different manner. Example, you can use the DLC1 under-hood diagnostic port to query the ABS system or SRS system on the car, if you see one of their trouble lamps light up.
The DLC1 output is a unidirectional, low baud rate serial data stream - still can be used in cars that have DLC2 and DLC3 ports. Generally, you have to make use of a "short" pins (a cable that jumpers two of the pins in the connector port), to access the onboard diagnostics.
The DLC3 output is a bidirection, high speed/high baud rate serial data stream. Carries much more information at a much faster transmission rate.
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2002 Corolla S, 1.8L 1ZZ-FE VVT-i
2003 Matrix XRS, 1.8L 2ZZ-GE, VVTL-i (RIP)
2009 Matrix XRS, 2.4L 2AZ-FE VVT-i
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