SOURCE: Dodge Durango 1998 5.2L Output Speed Sensor code P0720 Location
Its in different locations depending on if its 2wd or 4wd. For 2wd its in front of the drice shaft or for 4wd its in the tranfer case, just look for a white shape like box with wires plugged into it and you need a socket to remove it, iam not sure how much it is to replace as the cost varies at different shops.
SOURCE: Location Of input an output Speed Sensor on 1996 dodge avenger
According with repair manual, output speed sensor is located on the
Transmission, generally positioned over the park gear and monitors
transmission output shaft rotating speed; check some details in the next
image...
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SOURCE: where is the crank shaft sensor locate on a 1998
Should be bolted right before the transmission (it has a wire connected to the harness) on the upper side of the engine (near the interior). See Chilton manual 20404.
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