That's the idea.just a minute... As per my diagram the arduino GND is being connected to auto GND so technically couldnt i just connect the diode from arduino GND to just before the relay control output. I mean wouldn't that have the same effect since they are connected anyway just from a much longer distance? Please correct me if I'm wrong. I again have no idea how shared grounds work.
The way we refer to ground is a "common" ground which just means the 12 volt and 5 volt grounds are a common ground. There is no need or reason to isolate the grounds from each other. Not for what you want.
Also, before I forget when you write your Arduino code for the buttons consider switch bounce on your buttons.
Ron
