The third-generation Caravan (1996-2000, though '95 is the transitional model) is infamous for transmission failures and 3.0L V6 head gasket issues. The 3.3L is more durable, but expect the 41TE/A604 automatic transmission to be a ticking time bomb regardless of engine choice.
41TE/A604 Automatic Transmission Failure
Common · high severityTypical onset: 80,000-150,000 mi
Symptoms: Harsh or delayed shifts, especially 2-3 upshift, Slipping in overdrive or no movement in reverse, Limp mode (stuck in second gear), Burnt transmission fluid smell, metal shavings in pan
Fix: Rebuild requires 8-12 hours labor; solenoid pack and valve body are common culprits but clutch pack wear usually means full rebuild or replacement. External cooler lines rust and leak, causing low fluid and accelerated failure. 10-14 hours for R&R and rebuild.
Estimated cost: $1,800-3,200
3.0L Mitsubishi V6 Head Gasket Failure
Common · high severityTypical onset: 90,000-130,000 mi
Symptoms: White smoke from exhaust, sweet coolant smell, Overheating with no external leaks, Coolant in oil (milky dipstick) or oil in coolant, Rough idle, misfires after warm-up
Fix: Both heads must come off (12-16 hours labor); heads often warp and require machining or replacement. Timing belt should be done simultaneously since you're already there. The 3.0L is known for this — many shops recommend just swapping to a junkyard 3.3L instead.
Estimated cost: $1,500-2,800
Transmission Oil Cooler Line Corrosion and Leaks
Common · medium severityTypical onset: 70,000-120,000 mi
Symptoms: Transmission fluid puddles under front of vehicle, Low fluid level causes delayed engagement, Visible rust perforation on steel cooler lines near radiator
Fix: Steel lines rust through where they run along subframe; replacement lines are 2-3 hours labor. If caught early, it's cheap insurance against transmission damage. Ignore it and you'll be doing a transmission rebuild within 5,000 miles.
Estimated cost: $250-450
Power Door Lock Actuator Failure (Sliding Doors)
Occasional · low severitySymptoms: Sliding door won't lock/unlock with key fob or switch, Mechanical grinding noise from door latch area, Door ajar light stays on even when closed
Fix: Plastic gears inside actuator strip out; replacement actuator is 1-1.5 hours per door (door panel removal). Not a safety issue but annoying and related to NHTSA liftgate latch recalls on this generation.
Estimated cost: $180-350
Intake Manifold Gasket Leaks (3.3L/3.8L V6)
Occasional · medium severityTypical onset: 100,000-150,000 mi
Symptoms: Coolant seepage at front of engine, below throttle body, Slight overheating or coolant loss with no visible external leak, Rough idle or vacuum leak symptoms
Fix: Upper and lower plenum gaskets fail; 4-6 hours labor to remove intake, replace gaskets, and reseal. Common on the 3.3L but not as catastrophic as the 3.0L head gasket issue.
Estimated cost: $450-850
Front Strut Tower Rust-Through (Rust Belt Vehicles)
Occasional · high severitySymptoms: Visible rust perforation around strut tower mounting point, Clunking over bumps as strut mount shifts, Strut tower mushrooming or separation from unibody
Fix: Not a repair but a structural failure — welding in reinforcement plates requires frame shop work (8-12 hours). More common in salt states. If both towers are gone, the van is often totaled by economics.
Estimated cost: $800-1,500
Alternator Failure
Occasional · medium severityTypical onset: 90,000-140,000 mi
Symptoms: Battery light on, dimming headlights, No-start with new battery, Squealing from serpentine belt area
Fix: Chrysler alternators of this era have weak voltage regulators and bearing failures; 1.5-2 hours labor for replacement. Not unique to Caravan but common enough to mention.
Estimated cost: $280-450
Buy only if it has the 3.3L V6, documented transmission services, and you have $2,000 set aside for the inevitable transmission work — otherwise walk away.
AI-assisted summary drawn from NHTSA recall data, our labor-times database, and platform knowledge. Not a substitute for a pre-purchase inspection on a specific vehicle.