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 Ford Mustang owners, lightly cleaned up (personal details are redacted by NHTSA).
Dt*: the contact stated, the engine overheated due to cracks in the head gasket, causing the transmission to slip. There was an accident on 6/20/06 due to the transmission slippage. It was raining and the rate of speed was 30mph. No injuries incurred but minor damage to the other vehicle was reported in the police report.
Remote door does not work all of the time. Dealer replaced latch but did not correct the problem. Customer placed a small round magnet on the quarter panel on each side where the lid contacts the quarter panel temporarily correcting the problem. Customer would like the dealer to properly correct the problem. Car idles rough when accessorories are turned on. Transmission shifts harshly under various conditions. Transmission does not immediatelt engage in gear when going from park to drive. This seems to happen when car sits for an extended period of time but does not always occur. Customer has noticed at times an unusal large loss of transmission fluid but does not see a leak or smell. Right front door speaker cuts in and out.
We took car in to local Ford dealer for routine mileage checkup. They heard noise in rear -end. We had them tear into the rear end to see what problem was. They gave us an estimate of $2,000. This car is only 2 yrs. Old. We questioned how this could happen. We were told it doesn't usually happen at this mileage, bearing went out and caused entire rear end to need replaced. We do not have extended warranty so we contacted Ford motor corp. Customer service. They said there was no recall, therefore we would have to incur all cost. They said it was not a concern of their's. The vehicle has been sitting in our garage since that time. We still have to make payments. We feel it is faulty workmanship. This car was driven by myself with 2 small children to and from work/school every day.(it has not been "ran hard" etc.) thank you.
I lost count after 22 times for that car being in the shop. Now... I can barely get it out of park.. They ordered the part for it, but failed to call me when it came in, therefore it was sent back. Then after I complained again to the service manager. I was told that the part was now on back-order, but they found one in oklahoma that was going to be sent to them for me in a week. After 3 weeks I went up there again and I was told that there is no part coming in from oklahoma, that one's on back-order too ! I am getting the run around for a car that doesn't even get me around !!!!!! This is ridiculous ! Please someone help me ! I don't know what to do now and I'm always late for school and appointments because I can't get my car out of park !!!! My thumb is so sore and swollen and calloused from trying to get it out of park !
We took car in to local Ford dealer for routine oil change and to check a noise we had heard in the rear end. They tore into the rear end to see what problem was. We were told that the whole rear end needed to be replaced. They gave us an estimate of $1600. We questioned how this could happen. We were told it doesn't usually happen at this mileage. They also told us that there was no preload on the axel. We complained to Ford headquarters to no avail. The car was no longer under warranty. This was not a good answer. This is a premium car that has been well cared for and always driven by adults, and only serviced at the dealership where it was purchased. We were given no explaination as to why there was no preload, other than the car might have been assembled on Monday rather than Tuesday. Dt
When vehicle is turned on, it would make strange harmonic resonance noise, causing vehicle to vibrate & shake. Only happens when vehicle is running. Noise would build up. Problem cannot be duplicated. Vehicle could be idling & noise would also appear. Mechanic cannot solve problem. Also has a bad drive train & rear end.
Vehicle pops out of overdrive and o/d light flashes on. The transmission shop has replaced the cylnoid that controls this 4 times. Works for awhile then starts again. Cannot find any other problems. Transmission rebuild is now the only remedy.
While parked on decline vehicle rolled and hit another vehicle with parking brakes still on, had parking brakes done on recall in 2001. Took to dealer and dealer repaired vehicle stating parking brakes were fine.
Consumer noticed when parking on a hill or flat Land vehicle shifted out of reverse and rolled forward. Dealership serviced vehicle, and noticed shifter fork was worn out.
Manual transmission jumps out of 4th gear and reverse. Dealer attempted to make no repairs and claims Ford is aware of the problem.
Transmission complaints in other Mustang years
Frequently asked questions
How common are transmission problems on the 1998 Ford Mustang?
NHTSA has 22 complaints about the transmission & drivetrain of the 1998 Ford Mustang, 7% of the model year's 300 complaints. The component named most often is automatic transmission (9 mentions).
Is there a recall for 1998 Ford Mustang transmission problems?
No. NHTSA lists no transmission & drivetrain recall for the 1998 Ford Mustang, though it has 4 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 1998 Ford Mustang transmission problems start?
Half of the complaints with a recorded mileage happened before about 90,000 miles.
Is it dangerous?
Owners linked 2 crashes, 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.