Which parts fail
Components named in complaints (automatic and manual transmissions, CVT, axles, driveshaft, 4WD/AWD).
Mileage when the problem started
Owner reports
Selected complaints filed with NHTSA by 1996 Dodge Neon owners, lightly cleaned up (personal details are redacted by NHTSA).
Tl* the contact was servicing a 1996 Dodge Neon. The vehicle was parked out front of an independent repair shop with the engine turned on when the shifter independently shifted out of park and into reverse. The vehicle travelled approximately eight miles onto the highway at a slow speed. The mechanic chased after the moving vehicle and was eventually able to open the front driver side door and enter the vehicle. The brakes were immediately engaged to stop the vehicle. There were no injuries. The vehicle was driven back to the independent repair shop where the shifter cable was replaced. The failure mileage was 137,537.
I have had ongoing problems with my 1996 Dodge Neon sport, it has been inoperable for the last year or so, due to electrical problems and stalling which I believe stem from the wiring harness. I have had the brakes replaced a few times, the A/C replaced, fuel injection acts up and the fuel gauge fluctuates, my transmission has started slipping, power steering and exhaust are leaking, numerous oil leaks, rear lights/ brake lights have not worked in over a year, driverside window broke along the extending arm inside of the door frame, trunk release is broken and my cruise control is broken! For the last 4months my car has been sitting at atlanta Dodge llc! Just after leaving it with their service department, I received a call saying I needed a new battery and until it was replaced for $180 they could not do a diagnostic check for any other problems!! …
The problems that are occuring on a daily basis are: the gas gauge doesn't work,the speedometer doesn't work,the temperature gauge doesn't work,the mileage gauge doesn't work because the speedometer isn't working.sometimes while you are driving the lights(seat belt,etc.)will pop on making the dinging noise letting you know that everything is on(like when you 1st start up the car)but nothing starts working then but the temperature gauge.we never know how much fuel we have put in our car,how fast we are going,or if the car is running hot or cold.at one point we were having to get jump starts all of the time. …
Purchased in July of 1996 only put on 26,345 miles motor mount repaired twice,brakes front replaced they were completly gone ,back brakes are no good need to be replaced, high pitch squealing comes from them ,oil gasgets had to be replaced, stearing to a hard right or left you get a grinding noise, transmission is know leaking constantly having to put transsmission fluid in all the time have a list of papers from the car being serviced at daimler on andover st in peabody were I purchased car also wrote to main office to see if they would replace the vehicle after purchasing with cash and just got the run around know I am afraid to drive her that is why she only has 26,345 miles on her in 10 years I am not a rich person so I can not afford another car if there is a recall on any of these problems I would like to know so they can be fixed so I can drive her without worrying what will …
Head gasket was first replaced under warranty with 20,901 miles on the vehicle. The transmission let go with 35,654 miles on the vehicle. My vehicle was out of warranty at this time. The head gasket failed a second time with 46,958 miles on the vehicle. This repair was done at dartmouth Dodge, 225 state rd., north dartmouth, ma. 02747, since it was closer to my home, and they were not in business at the time that I purchased the vehicle. Chrysler gave me a $300.00 credit towards the repair of the head gasket. I strongly feel that I should be reimbursed for this repair since it was replaced under warranty the first time, and it broke again approximately 26,000 later. Apparently, there has been a problem with head gaskets for this vehicle. I also feel that a recall campaign should be instituted to repair all these vehicles since it is a common problem with them.
Vehicle was difficult to get in reverse. This was worse when 20 to 85 degrees outside. Vehicle would not shift into drive until 55-60 MPH, but 1 and 2 were okay. I had the vehicle repaired at local chicago non-selling Dodge dealer at my cost of $1,200. The dealer advised front pump seal failed causing entire transmission to overheat and fail. The service writer advised this is a common failure with these vehicles. Reviewing web sites (including this one) I see similar complaints for this exact set of symptons. I have recently requested reimbursement from Dodge, but they have not had a chance to respond yet.
The head gaskets had to be replaced, alot of people have the same problem. The speedometrs come on and go off all the time. If you hit a bump or hit the dash they might start workin agiain. That includes the gas gauege. The car jerks while driving. It dies when making a turn or at a stop sign. It cuts in and out. Auto shop is trying to pin point the problem. Not real sure whats wrong I replaced the mgr valves that didn t help. Might have to replace fuel pump, but not sure if that will solve the problem. Car is just a bad vehicle t o have gotten. A lot of other peole are havingthe same problems
This car has had 3 transmissions and now needs another with only 56,200 miles. It has also had a starter, radiator,battery, 7 front right tires(none from nails etc.),2 head gaskets,EGR valve,multifunction switch, 2 sets of brakes(which still make noise). Our mechanic has told us that the 96 Neon is a lemon. The brakes are made from a metal that rusts very quickly and the head gaskets are faulty and will continue to have problems. What can I say about the transmission?? Is 4 too many for a car with only 50+thousand miles?? Help!!!!( dot number: tire size: 1857014 )
I have the exact same problem twice. The first one was at 29000 miles and transmission was overhauled and oxygene sensor was replaced. Then, at 64000 miles the exact same thing happened. Talked to exteneded warranty company and they said the problems are not realated. Talked to dealership, and they said that the problems were "peculiar". Called diamler-Chrysler, and they said that the two systems were not related. But the problems were exactly the same both times.
While driving at normal highway speeds speedometer starts acting erratically. The needle wave back and forth between 0 and the present speed. After about 20 seconds the needle goes to zero and remains there. In addition to having no idea what your speed is the odometer is disabled . On the most recent failure turning the car off ,while in a resturant for 45 minutes seemed to clear up the problem. Upon resuming our trip we had the speedometer and odometer working.
Transmission complaints in other Neon years
Frequently asked questions
How common are transmission problems on the 1996 Dodge Neon?
NHTSA has 47 complaints about the transmission & drivetrain of the 1996 Dodge Neon, 8% of the model year's 611 complaints. The component named most often is automatic transmission (28 mentions).
Is there a recall for 1996 Dodge Neon transmission problems?
No. NHTSA lists no transmission & drivetrain recall for the 1996 Dodge Neon, though it has 2 recalls for other components. If the problem is widespread, a repair may still be covered by an extended warranty or a manufacturer service bulletin — ask a dealer.
At what mileage do 1996 Dodge Neon transmission problems start?
Half of the complaints with a recorded mileage happened before about 50,000 miles, and 33% before 25,000 miles.
Is it dangerous?
Owners linked 0 crashes, 0 fires and 2 injuries to transmission & drivetrain problems on this model year. If you notice symptoms, have the car checked before driving further.
Source: U.S. National Highway Traffic Safety Administration (NHTSA) — owner complaints through October 20, 2026, recalls and defect investigations; fuel economy from the EPA. Complaints are unverified reports and are not proof of a defect. How we rate model years.