ID3 (Iterative Dichotomiser 3) is sub-subject of AI(Artificial Intelligent). Today’s car buyers need to know the news of car. ID3 algorithm can analyze car data to show the buyers the prediction of news of car they specified to buy so that they can decide good buying or not. With ID3 algorithm, ‘car.data’ file was used and it’s features are buying, maint, doors, persons, lug_boot, safety and it’s target is Decision. The values of target are ‘unacc’, ‘acc’, ‘good’ and ‘vgood’. As first step, the given data is trained with entropy and information gain methods to produce rule and in second step use the rule to test the sample data for prediction of output target. The ‘car.data’ file was downloaded from google.com and python code was used for implementation of data analysis.