Stand-alone global position system receiver based on C/A code tracking generates position error of 100m mainly due to the selective availability and ionospheric and tropospheric delay errors. The differential GPS is the most commonly used method for removing those bias range error components. The relative GPS, although somewhat restrictive in its use, is ideally suited to the car monitoring system for improved Automatic Vehicle location, especially where the DGPS infrastructure is not available. The RGPS does not require any additional hardware, facility or external infrastructure and can be operated within the system with existing host computer and communication link. This paper presents detailed description of the RGPS concept and its implementation for real-time data processing. Performance of RGPS is evaluated with real data and is compared with DGPS.