How much does a dealership charge to replace a transmission?

Dealership-installed transmissions typically cost roughly $4,000 to $8,000, with higher prices for luxury or highly complex systems. This varies by model, whether the unit is remanufactured or new, and local labor rates.

In this article, we explore the factors that drive those costs, outline typical price ranges for common scenarios, explain what happens during the replacement process, and offer practical tips to shop around and save. The goal is to help you understand what you’re paying for and where variation comes from.

What affects the price

Prices at the dealership are driven by several factors. Understanding them helps you read a quote more accurately and compare offers from different shops.

• Transmission type and vehicle: automatic, CVT, DCT, or manual; and the car’s make, model, and year.


• Unit type: remanufactured OEM unit versus a brand-new OEM unit, which varies in cost and lead time.


• Labor hours and regional rates: dealerships typically bill by the hour, and rates can vary by location and model complexity.


• Additional components and services: torque converters, seals and gaskets, fluid replacement, sensors, wiring, and possible computer reprogramming.


• Vehicle electronics and integration: some modern transmissions require software updates or calibration to work with the car’s ECU.


• Hidden or added charges: core charges, disposal fees, shop supplies, and taxes, which can appear on the final bill.

Taken together, these factors determine the final invoice, and a quote may break down parts, labor, and any ancillary fees so you can compare apples to apples.

Typical price ranges

Before listing typical ranges, note that exact numbers depend on the car and region. The figures below reflect common dealer-installed scenarios for many mainstream vehicles as of 2024–2025.

• Remanufactured OEM transmission installed by the dealer: roughly $3,500–$6,000


• New OEM transmission installed by the dealer: roughly $4,500–$8,000


• Luxury or highly complex transmissions (premium brands, performance models, or advanced features): roughly $7,000–$12,000 or more


• Additional costs that can push the total higher: fluids, gaskets, torque converter, core charges, disposal, and sales tax

Always request a written estimate that itemizes parts, labor hours, and any other charges. Warranties vary, but many dealer replacements include some form of parts and labor warranty, often several years or a limited mileage period.

What to expect during the process

Knowing the typical steps helps you plan and set expectations for turnaround time and disruption to your vehicle.

1. Diagnosis and confirmation that transmission replacement is necessary, or if a repair might suffice.


2. Delivery of a formal quote with a breakdown of parts, labor, and any ancillary fees.


3. Removal of the old transmission and installation of the replacement unit (reman or new).


4. System tests, fluid fill, and a road test to ensure proper function and shifting behavior.

The entire process can take from one to several days, depending on parts availability, the shop’s workload, and whether new software calibration is required. If your vehicle is a loaner or courtesy vehicle option is available, it can lessen downtime.

Alternatives to dealership replacement

Dealerships aren’t the only option. Depending on your vehicle and warranty status, independent shops and third-party suppliers may offer cost savings or different warranty terms.

Common alternatives to consider

• Independent or specialty shops: often offer lower hourly rates and competitive pricing for remanufactured units.


• Remanufactured transmissions from third-party suppliers: can be cheaper than dealer-installed new OEM units, with varying warranties.


• Used or salvage transmissions (with caution): may be cheapest upfront but carry higher risk if the history or condition is unknown.


• Extended warranties or vehicle service contracts: may cover part or all of the replacement in certain scenarios.

When weighing alternatives, compare not just price but warranty coverage, return policies, and the shop’s reputation. Ensure compatibility with your vehicle’s electronics and confirm whether reprogramming or software updates are included in the price.

Tips to save and get the best deal

Before committing, use these practical steps to improve your odds of getting a fair price and solid service.

• Obtain multiple written quotes from both a dealership and reputable independent shops.


• Ask for a detailed breakdown of parts, labor, fluids, and any fees; request the hourly rate used in the estimate.


• Inquire about core charges, warranty length, and what happens if the replacement fails under warranty.


• Consider timing and parts availability; if you can wait, you might secure a better price or a preferred unit.


• Check current promotions or service discounts offered by the dealer or local shops.

After evaluating quotes, confirm what is included in the price and what would trigger additional charges. A clear, written warranty can provide long-term peace of mind.

Summary

Replacing a transmission at a dealership is a major service with costs typically ranging from about $4,000 to $8,000 for mainstream vehicles, and higher for luxury or complex transmissions. The exact price depends on the transmission type, unit (remanufactured vs new), labor rates, and any additional parts or software work required. To secure the best value, obtain multiple quotes, review line-by-line, and consider reputable alternatives such as independent shops or third-party remanufacturers, always with a clear warranty. By understanding the factors and asking for a detailed estimate, you can navigate this expensive repair more confidently and avoid surprises.

Will a dealership replace a transmission?

A dealer isn't going to rebuild your transmission, they will replace it with a new or reman for way more than you'll want to spend. A brand specific shop isn't going to do the work themselves unless they are a shop that specializes in drivetrain. A good transmission shop is your best choice.

How long should it take a mechanic to replace a transmission?

one to two days
In general, service experts agree that it doesn't take more than one to two days to replace a standard transmission, with some finicky models taking three or four days. That's why it's essential to stay on top of routine maintenance to ensure that your vehicle is in top shape.

How much is labor to replace a transmission?

Labor to replace a transmission typically costs between $500 and $1,500 or more, depending on the vehicle's complexity, the shop's hourly rate, and the total time required, which can be 8 to 12 hours or longer. Factors like location and the type of vehicle (manual, automatic, luxury) influence the final price. 
Factors that influence labor cost

• Labor Rate: Shop rates vary by location, ranging from about $70 to $150 per hour. 
• Vehicle Complexity: Replacing a transmission is a labor-intensive job that requires removing the old one, installing a new one, and performing calibration and testing. The complexity of the vehicle's design can significantly increase the labor time and cost. 
• Manual vs. Automatic: While not a major factor in labor cost, automatic transmissions can be more complex to replace and may require specialized equipment or recalibration. 
• Parts: The labor estimate doesn't always include the cost of new transmission mounts, CV axles, or other related parts that may need replacement. 
• Additional Labor: The total labor cost can increase due to issues like rusted bolts, or when the replacement of other components is necessary, such as transmission mounts, CV axles, and other miscellaneous parts. 

How to estimate the cost

1. Get a detailed quote: Ask for a detailed estimate that includes the total number of labor hours and the shop's hourly rate.
2. Check with multiple shops: It's advisable to get quotes from several reputable shops to compare prices.
3. Ask about potential additional costs: Inquire about potential extra costs for parts like new transmission mounts, fluids, and other components that might be needed during the replacement. 
4. Consider the type of transmission: If your car has a manual transmission, it might be less expensive to replace than a modern automatic transmission, as it is often simpler in design. 
5. Look for discounts and coupons: Check online for any special offers or coupons that may be available for transmission replacement services. 
6. Check if your warranty covers the repair: See if your warranty covers any part of the transmission replacement, or if it has any coverage for transmission issues. 

Is it cheaper to fix a transmission or replace it?

It is cheaper to fix a transmission if the problem is minor, like a small leak or a few worn parts. If the damage is extensive, rebuilding or replacing the transmission is necessary, and a rebuild is often cheaper than a full replacement, especially for newer or well-maintained vehicles. A replacement is typically the most expensive option, but can provide greater peace of mind and reliability for older vehicles with widespread damage. 
Fix vs. Rebuild vs. Replace

Option	Cost	When to choose
Fix	Cheapest ($300 - $600)	For minor issues like sensor replacements, solenoid adjustments, or small leaks.
Rebuild	Mid-range ($1,100 - $3,500)	When the damage is extensive enough to require a rebuild but not a full replacement, and the vehicle is newer and well-maintained.
Replace	Most expensive ($1,800 - $8,000)	When the damage is catastrophic or the vehicle is older and a new unit provides the best long-term solution.

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Key factors to consider

• Extent of damage: Minor repairs are always cheaper than rebuilds or replacements. 
• Vehicle age and value: For newer cars with lower mileage, a repair or rebuild is often more economical. For older, high-mileage vehicles, a replacement might be a better investment for the long term. 
• Labor costs: Labor is a significant part of the cost for any transmission service. 
• Time: Rebuilding can take longer than a replacement, but it is still often faster than finding and installing a new transmission. 
• Vehicle condition: A vehicle's overall condition is crucial when deciding on a transmission repair or replacement.