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 1997 Dodge Neon owners, lightly cleaned up (personal details are redacted by NHTSA).
The consumer saw oil leaking from the vehicle. The dealership informed the consumer that the problem pertained to a head gasket failure. The mechanic did not resolve the problem. On June 3rd 2002, the consumer had to have the transmission re-built. The main gear had a crack in the casting and started to loose teeth. The consumer noticed the casing of the transmission was wet. The heads of the engine were warped. The dealers in both case only changed the gasket and not checking to see if the head was warped. When the vehicle was cold in the morning, it wouldn't engage in reverse for up to 30 seconds, then clunks in hard and if driving when still cold, it seemed to shift in and out of gear. (and shifts hard from 2nd to 3rd and over revs in 2nd prior to shifting)
Well lets see the first defect was a fan relay which was replaced 5 times before a wiring defect was found next we have "hard brakes" which contribuited to an accident which caused 7000 dollars in damage and 1 minor injury due to the fact that the air bags did not deploy, we follow that up with a leaky head gasket which Chrysler was kind enough to return 1/2 of my out of pocket expenses along with wiring defects and air bags that don't come out other than the fact I have had more problems with this car than every other cars I have ever owned they made up for this lemon by having a bad customer service department too.
Vehicle was parked, child's foot hit the gear shift when attempting to get a bag out, the vehicle rolled back. Accident occurred, hitting various things. Dealer contacted and inspected vehicle. Stated owner's manual parking brake should be on, and keys should have been removed. Consumer said everything was done. Dealer cannot duplicate the problem.et.
I just bought this 97 Dodge Neon with only 23,000 miles on it. The A/C has a leak in the coil , the transmission is slipping . The car is in great shape but those few things so far . The person who owned the car before me was an older gentleman who does not wreck his things. I was wondering are these problems, factory problems and/or recalls?
After placing vehicle in park, removing key from the ignition, and when exiting vehicle, gear shift moved out of position, causing unwanted vehicle movement, resulting in the vehicle rolling forward. This caused injuries to the driver . Consumer has contacted dealer.
The first problem I had with this car was the head gasket blew out. Chrysler agreed to pay for it (the $1000 was my estimate of what it cost to replace the gasket). The second problem was the throttle assembly and coil pack quit working, both at the same time. I paid $600 out of my pocket to fix them. The third problem was the automatic transmission started slipping and the car will not go into reverse when its cold. The fourth most current problem is the brakes are not working properly the pedal will not go down and the dealer says its probably something to do with the vacuum system. I contacted Chrysler and they are not willing to pay for the repairs for the transmission, even though they have admitted that they have problems with automatic transmissions per information I obtained from a web site called lemon- aid. ****** I will never buy a Dodge again!!! I'm spreading the word. …
Ever since I bought the car used I have had numerous problems. Here is just a brief list: incorrect gas mileage both city and highway, transmission problems, brakes squeaking, air coming through bad window seals, defrost not working properly, air conditioning not working correctly, 3 oxygen sensors replaced, 2 head gaskets replaced, and water coming into the trunk which has caused the jack and tire changing equipment to rust. Also the water then leaks into the back floor which causes the car to smell. The cs for Dodge will not agree to fix the problem with the original roof design which would correct the water from coming into the trunk. For the past year, about every 2 months something is going wrong with the car which has just a little over 62,000 miles and proper maintenance has been followed.
Valve pan gasket and valve cover gasket gave out (blew) 120 miles after the manufacturers warranty ran out. Have replaced once and it has blown out again. This is not right. At this same time, the automatic transmission started making a clunk sound when shifting up or down. If a car manufacturer cannot make a car that lasts well beyond their pathetic warranty, then they should be held responsible. See ref: odi id: 536724 odi id: 545773 odi id: 704492 odi id: 707143 odi id: 710054 odi id: 780464 odi id: 826370 odi id: 829921 odi id: 831010 odi id: 831498 odi id: 832094 odi id: 841115 odi id: 847105 odi id: 848011 odi id: 848347
The vehicle has had three head gaskets and a transmission replaced once, as well as three neutral safety switches because the back up lights would not shut off, there is also a clnking sound in the front end and safety TSB's on it and the dealer still refused to correct it when under bumper to bumper, Dodge's philosophy is wait till the bumper to bumper is done to have the person pay either with the deductable on the service contract or out of pocket. Legislation should be passed to have a 3-36 war. On all replacement parts installed during a war. Period incase of failure.
While parked, transmission fluid leaked out of vehicle. Dealer found transmission lines loose. Vehicle shifting by itself due to a sticky cable. Oil leak in engine. Dealer found headgasket failure. On several occasions engine runs rough. Camshaft replaced. Vehicle shakes and trembles while braking. Weatherstripping fell off on drivers side door. Antifreeze leaking. Dealer replaced water pump. Battery clamp loose causing battery light to stay on.
Transmission complaints in other Neon years
Frequently asked questions
How common are transmission problems on the 1997 Dodge Neon?
NHTSA has 26 complaints about the transmission & drivetrain of the 1997 Dodge Neon, 7% of the model year's 390 complaints. The component named most often is automatic transmission (21 mentions).
Is there a recall for 1997 Dodge Neon transmission problems?
No. NHTSA lists no transmission & drivetrain recall for the 1997 Dodge Neon, though it has 1 recall 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 1997 Dodge Neon transmission problems start?
Half of the complaints with a recorded mileage happened before about 44,000 miles, and 50% before 25,000 miles.
Is it dangerous?
Owners linked 3 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.