Has it been scanned for codes?
A sketchy transmission speed sensor can play a part in what you've desribed.

 

I haven’t scanned it. There are not actual check engine lights on. Would there still be codes?

 

The capacitors in the speedometer have been known to fail. When they fail, they don't send the correct speed information to the transmission, which can cause shifting issues. The common symptom is that the speedometer gives strange or false readings.

The speedometer takes the analog speed sensor signal and converts it to a digital signal that gets sent to the ECU. There have been several members here with speedometers with bad capacitors. This can cause 2 problems. First the speedometer/odometer won't work correct, and second the A245E (4-speed auto) transmission won't shift correctly because the ECU doesn't get the correct speed signal. There are several capacitors and I guess depending on which goes bad it can cause either of these problems or both.

If the CEL has a code related to speed sensor then it's more likely to be a problem with the speedometer than the actual speed sensor in the differential. This is based on what I've read on this forum over the last several years. But check the codes to see what it says.

There are several threads discussing the speedometer problems and bad capacitors. This thread might be the best discussion:

1993 Corolla Speedometer doesn't work

Hey guys just want to know what could be the possible reasons why my speedometer on my 93 Corolla 1.8L 5speed manual isint working. The rpms work, the odometer for miles works and everything works but the speedometer. I checked fuses and they are all good. The only thing now that o think it...

www.toyotanation.com

The capacitors are easily replaced.

 

The problem is transmission problems don't show up on all scanners but something may have lasted long enough to throw a code that is a Pending status or even is now part of code History.
If the VSS is sending bad data to the ECM that would at least account for the shifting symptoms and maybe even the speedo/cluster issues. They're linked. Could be a iffy chassis ground too.
Are you in a cold climate? Have you experienced the same issues?

 

No, I’m in sc. so not a cold climate. The vss seems like a cheap part. How intense is the replacement? I’m mechanically inclined and am pretty sure I could fix it if I knew the location. Also, wondering about the speedo capacitor replacement while I’m at it

 

Not familiar with the capacitor job, cluster removal?
The VSS is on the transmission, I'm seeing 2 p/n depending on where the car was built.
If the VSS is sketchy it should throw a P0500 series code.

 

Hello everyone. Thanks for y’all’s suggestions. I replaced the vss and it seemed for a couple days that the issue was resolved. But today it did it three times. Speedo goes to zero, and car seems like it’s in neutral. Coasts for a bit and then re engages and back to normal until next time. Any help is appreciated.

 

Did you look into replacing the capacitors in the speedometer? Like in my post that was quoted above, the speedometer is the middleman which converts the analog VSS signal into a digital signal which the engine/transmission computer uses. The VSS itself is usually not the actual problem as you discovered yourself.

 

I know this is an old thread, but I'm having the exact same issue. Wondering if the problem was ever identified? I've changed the capacitors, and still had the same issue since replacement. Was going to change out the VSS, but don't want to just keep throwing parts at it.