Evolution of wireless access technology, availability of smart sensors, and reduction in the size of the set up of the communication system have engrossed many researchers toward vehicular ad hoc network (VANET).Vehicle-to-vehicle and vehicle-to-access-point communication in a vehicular environment facilitates the deployment of VANET for many different purposes. The success of any application implemented in a VANET relies on timely and accurate data dissemination across the nodes of the network. Implementation of any application is not going to be fruitful if the communication unit transmits incorrect sensor data due to the presence of a fault. This article focuses on the automatic detection of hard and soft faults for vehicular sensors and the classification of faults into permanent, intermittent, and transient faults using cloud-based VANET. For the cloud service, ThingSpeak cloud is used. At the RSU of the VANET, hard fault detection is performed, and for this purpose, a time-out strategy is proposed. The observation center, after receiving sensor status data over a vehicular cloud, does soft failure detection. The soft fault is identified by utilizing a comparative-based technique during soft fault diagnosis. Soft faults are categorized using two machine learning algorithms: Support vector machine and logistic regression. The effectiveness of the suggested work is assessed using performance metrics like fault detection accuracy, false alarm rate, false positive rate, precision, accuracy, recall, and F1 score.