Check engine muted, speedometer, nouns, Toyota Solara, P0500?

I have a 2000 Toyota Solara, with approx. 101,000 miles on it.
The check engine lighting came on a couple days ago and the transmission slipped. It revved breifly lacking engaging.
The light go off for a day.
Came final on yesterday with transmission revving short engaging itermittently AND the speedometer dropped to zero.
The speedometer would disconnectedly go up to speed.
This was on the style to work so I went home. Then drove to the dealership service center (but the speedometer worked that time). They said the diagnosis code was P0500 and the speedometer would have need of to be replaced for $495 parts and labor.

But according to searches, P0500 calls for the vehicle speed sensor to be replaced, not the speedometer.

Anyone enjoy experience with this issue?
Does this make sense? Does $495 nouns accurate?
Would the VSS replacement do the trick instead?
Is that cheaper?
Are these guys trying to (a)#$% me?

Any help on this would be appreciated!!
Thanks,
Rob

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hail as a transmission shop tell them the code # and ask them for a price return with it in writing or print out and call around for prices . you should not drive it be impose it could lead to transmission end. if it does it will cost you some serious $$$$$$$

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I'm not sure that the speedometer runs past its sell-by date the VSS. The sensor being bad would verbs the transmission computer and cause shifting problems. Make sure the pusher uses their scanner to read both of the speed sensors on a test drive. There is an input and output speed sensor. I would assume that they already checked the ATF level.
Because of the speedometer acting up I would check the electrical system loom connectors for problems and check for signs of mice chewing on the wires on top of the transmission. If nearby are seed and nut shells it's a good sign of varmint problems.

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Answers:    It does sound close to the VSS is the culprit. If the signal isn't accurate, the speedo will just do what it's told. BUT, it should also be sending bad information to the fuel injection computer. Drivability doesn't other suffer, but there should be related symptoms. If the VSS isn't bad, but the speedo is, the labor getting it out of the bit is what is driving up the cost.

It never hurts to have them itemize the bill to understand exactly whats up, and make available a warranty on the work.

Changing a VSS out mechanically is a low tech deal, and a obedient one could be had from the wrecking yard. I'd shop around and check prices, sometimes contemporary from a local NAPA is cheaper.The computer probably holds the odometer reading on that one, so changing the VSS amounts to unplugging it, removing the bolt that holds it, and checking that the new one have a gear on the end with like peas in a pod tooth count and color. Your local library has auto repair books that will show you how. It's a lot easier business than the old cable.

I would also check the trans fluid, as it wasn't mentioned that you had - be sure it's up to full.
I'm not sure that the speedometer runs past its sell-by date the VSS. The sensor being bad would verbs the transmission computer and cause shifting problems. Make sure the pusher uses their scanner to read both of the speed sensors on a test drive. There is an input and output speed sensor. I would assume that they already checked the ATF level.
Because of the speedometer acting up I would check the electrical system loom connectors for problems and check for signs of mice chewing on the wires on top of the transmission. If nearby are seed and nut shells it's a good sign of varmint problems.

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