Which parts fail
Components named in complaints (engine, cooling system, oil leaks, timing chain, exhaust).
Mileage when the problem started
Owner reports
Selected complaints filed with NHTSA by 1998 Dodge Neon owners, lightly cleaned up (personal details are redacted by NHTSA).
While driving to work one morning I checked my temperature gauge and realized my temp was extremely hot. Then there was a cloud of smoke rolling from under my hood. Being 50 miles from home and knowing this area too well I was very happy to see a county sheriff pull up behind me and offer me a ride to work. My car stayed on the side of the highway for 12 hours until I could get some one trust to come and tow it the 50 miles back home. The car sat for a while until I could save the money to bet it repaired. It was not easy to continue to pay a monthly loan payment on a car that was not drivable. Finally when we got the money I called a local and cheap mechanic to see what the problem was. A blown head gasket that in return caused oil to contaminate the radiator. It was only after speaking to my cousin who is a claims adjustor for a national extended warranty co. …
My wife bought her 1998 Dodge Neon in August of 2000. We recently passed 60,000 miles on the car and it began to leak oil. The leak was gradual at first and I assumed that the oil pan bolt had been put in incorrectly by the servicemen at the lube shop. However, on further review, the car was found to have a head gasket leak (approx. An $800 repair). Further research has LED me to find that this problem is common to all Dodge vehicles using this engine. The dealer, in conjunction with Dodge, has offered to cover the repair, minus a $250 deductible and a $105 fee for a coolant flush/oil change that they say is necessary when dealing with a head gasket repair. So, in review, Dodge's product is faulty and they know it. Nevertheless they will not assume full responsibility for a flawed design that they conceived. …
Brought car in for repair of severe oil leak at engine rear. Dodge dealer advises that it was a leaking head gasket (blown head gasket) on 1998 Neon with approximately 46,463 miles on the odometer. Could not reach Chrysler customer service at [phone] (stays busy); dealer refused to warrant work even though cause of problem was apparently a design/latent defect in the aluminum head. Vehicle purchased new 5/21/98. Internet reveals numerous other people have had similar problems. Fortunately, the car didn't break down and cause injuries, fataliites or property damage. A manufacturer and dealers should stand by their products. …
1998 Dodge Neon hs 2 door model has had an oil leak for approx. 6 months. Took it to the shop today and was told it was a blown head gasket. Shop owner told me of 4 other neons he has had to service for the same blown head gasket and that Neon owners are lucky if their car hits 40,000 miles without this problem. I know 2 other people with neons and they have had this problem also. I was told this would cost me 550.00 to fix. It is in the process of being fixed right now, but I feel a recall needs to be done to solve this.
Blown head gasket with only 60,000+ miles on car got it used and have only had for 1 year 6 months. Actually problem occurred in January 2003. Oil draining from around oil filter. Had replaced filter and oil still draining around filter area. Took shop a while to find problem but, then said the head gasket needed to be replaced and repaired. April was when it got into a shop, but car had sat from January until April.
Head gasket blew at 60,000 miles. Fortunately, my cousin is a claims adjuster for an extended warranty group. I was told to go to Chrysler and remind them of the others that they have reimbursed for these damages and it worked. Chrysler paid for the repairs, all though it was not easy. I got the run around and an ear full of lies. But, in the end they paid. Don't take no for an answer. They have to fix it.
Oil leaking in driveway, took for inspection immediately (same day it was noticed on a new driveway). Inspector notes head gasket leak this motor should be on a recall list with as many as they have seen on this model. Scc ****dimsii ivoq entry posted after 12/12/02 cut-over to artemis****770859****
Vehicle stalled out when stopped on one occasion, then stalled out again while driving, causing driver to be unable to stop. Brakes went out and frontal impact occurred. Airbags did not deploy. Dealer not aware of problem. Problem still exists. Provide further information.
Sun roof glass came of the track and will not open or close. The track was replaced three times. The sunroof would drag and make knocking noises. The vehicle also experienced a battery problem and oil leaks which had come from the cylinder head.
The oil light would come on and oil would leak out of the vehicle. After trying to start the vehicle the engine does not connect at first, has to try at least two times before it will start. Dealer stated it could be either the starter or the engine.
Engine complaints in other Neon years
Frequently asked questions
How common are engine problems on the 1998 Dodge Neon?
NHTSA has 199 complaints about the engine & cooling of the 1998 Dodge Neon, 59% of the model year's 339 complaints. The component named most often is engine (135 mentions).
Is there a recall for 1998 Dodge Neon engine problems?
No. NHTSA lists no engine & cooling recall for the 1998 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 1998 Dodge Neon engine problems start?
Half of the complaints with a recorded mileage happened before about 49,000 miles, and 5% before 25,000 miles.
Is it dangerous?
Owners linked 3 crashes, 0 fires and 0 injuries to engine & cooling 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.