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 1998 Dodge Neon owners, lightly cleaned up (personal details are redacted by NHTSA).
Motor/transmission mount replacement,4-5 times,will not hold. Egrvalve replacement ,engine light keeps saying it need to be replaced even after it has been replaced and light cleared. 4-5 times .both are now on going.
I purchased a 1998 Neon espresso in June of 2004. On about July 2004 my car died. I had it towed and had over $1,800 of engine work done. After work was done they stated my rear seal was leaking and wanted over $600 to repair this.
The head gasket failed which caused the vehicle to stall, the dealer replaced the head gasket, however after 2103 miles the head gasket failed again. Ph. The transmission pan was leaking fluid and the wiper blades was replaced.
This car has endless problems. With 2 head gaskets and 1 valve gasket blown, I worry about what damage has been done to my car. I just hope it doesn't blow too. I want Chrysler to double my warranty!
Consumer noticed that passenger's airbag was trying to come out of cover due to warping, the airbag came out of position. Gear shift can be move out of park without the key in the ignition due to failure of the interlock system. Head gasket failure resulted in oil leakage. Problems with the interior lighting system due to missing door ajar switch bumper. All speakers need replacing due to noise distortion. Possible electrical shortage is causing the steering wheel/column to make noise as well as flashing of the instrument dash lights.
Consumer purchsased vehicle with 12,000 miles on it. Transmission fluid was leaking. Took vehicle to dealer & had seals tightened. 1-2 days later, engine check light came on & the car shut off while making a left turn. Vehicle had to be towed on 10-18-99 because consumer was scared to drive it. Consumer found out head gaskets were cracked. Consumer has other problems with the vehicle & dealer was not acknowledging the defects. Will contact the lemon law.
When driving at any speed and going up hills, the consumer has to put the foot on the gas pedal hard to get some speed. On wet pavement the vehicle really doesn't have power. The vehicle will downshift, and when driving it will do light shifting. Vehicle is in the shop, and the dealer said the vehicle passed all the fuel tests, but the problem still occurs. The dealer did some work on the oil pan.
Head gasket and oil pan gasket failures. Vehicle taken to an independent repair shop for repairs. Currently, a transmission rear gasket failure occurred, causing fluid leakage. Dealer was notified at this time. The dealer was unwilling to do repair because the vehicle had been at independent repair shop earlier.
When driving at any speed and shfting to another gear, the vehicle jerks and shakes and there is a leakage within the transmssion. Also, front of the vehicle where the motor mounts are located on the bottom and the top, broke and there was some type of leakage.
While driving vehicle was really hot, it would sound like someone blow a bull horn. Mechanic said the left and right bearings malfunctioned. Consumer stated the engine lost power while in traffic and vehicle missed. This happened every 8000 miles.
Transmission complaints in other Neon years
Frequently asked questions
How common are transmission problems on the 1998 Dodge Neon?
NHTSA has 20 complaints about the transmission & drivetrain of the 1998 Dodge Neon, 6% of the model year's 339 complaints. The component named most often is automatic transmission (12 mentions).
Is there a recall for 1998 Dodge Neon transmission problems?
No. NHTSA lists no transmission & drivetrain 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 transmission problems start?
Half of the complaints with a recorded mileage happened before about 40,000 miles, and 33% before 25,000 miles.
Is it dangerous?
Owners linked 1 crash, 0 fires and 0 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.