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Code P0500 speed sensor

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It seems when it rains it pours. My speedometer stopped working a few days ago and I thought it was related to the gear inside the diff. Last night I removed the sensor, looked where the slot was positioned, moved my car looked again and the slot was in a different position. I am assuming the gear inside is ok. Today I purchased a new speed sensor, installed it and drove around the block only to find the speedometer still does not work. Now I have read the cluster could be an issue as well. Before my speedometer stopped completely here is what was going on. It would work and then when I lifted off the throttle and began coasting it would stop and drop to zero. Then when I accelerated again it would go back up to speed until finally it just stopped all together. Why would accelerating and decelerating have an effect? I returned the new sensor since it did not fix my issue. Does this sound like the cluster is bad? How can I make sure before I have to buy one someplace? Sorry for all the silly questions, but I really want to keep this car since it runs and drives great and I put 150 miles per day on it going to and from work. Even gets me 26 mpg on the highway. Thanks in advance for all answers. Is there anything else besides the sensor or the cluster that would cause my speedometer not to work. It is important for me since i drive on the highway allot and the police can be picking as to how fast you go......

 

 

I was told there is a wire repair to the cluster that works. I was wondering is someone can post a step by step proceedure on this? It was for a 1999 Legacy, but was curious if it would work on mine....

Edited by flyer23

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Year? Auto or manual?

 

1995 Legacy L AWD auto. Turns out after further investigation that the gear inside the diff is the issue. Last night i pulled the speed sensor out, put the car on a lift at my job and low and behold the drive was not spinning. Stuck a screw driver in the slot and turned it a little and started and stopped spinning, so the gear must be chewed up and have bad spots in it. This is gonna be fun......LOL

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