Our 1998 ranger has over 180,000 miles. The automatic/overdrive transmission is bad. The 4.0 engine still runs but is tired. No way to replace the truck for less than $3-4 grand and the 4 wheel drive is intact. The body and interior are good as well. What is the best way to go budget wise? I am 70 and haven't swapped an engine or transmission in 30 years. Are there any deals out there for both? I have tools and space for doing it. I just want the easiest and least expensive way to go. I won't sell it unless it is running right. Suspension and brakes are all done, we like the truck!

 

Welcome to the forum

You have a 4.0l OHV engine in a 1998 Ranger(1990-2000 Rangers)
(2001 Rangers, and up, had the 4.0l SOHC engine, just FYI, not the same engine)

And you have 5R55E automatic transmission

4.0l OHV were very reliable up to 400k miles, if not overheated, they had a weak spot in their heads that would crack if overheated
Spark plugs, fan belt, oil changes, PCV Valve and coolant changes are about it for these
O2 sensors last 100k miles or 12 years, ONLY sensor that actually wears out, runs out of the chemical to detect oxygen, no codes are set, MPG just gets lower and lower over the years, these are not expensive or hard to DIY

5R55E is a later model of the A4LD(1985-1994) and used in Rangers until 2011, so a reliable automatic but it is an automatic, so $$$ to fix
Expected life is 250k so a little early for trouble but can happen of course
And at 180k the clutches and bands are closer to end of life so just repairing a bad valve body in vehicle might work but not for long

There is no real cost benefit to do both an engine and trans swap at the same time, at a shop or DIY

Because you have a 1998 4.0l Ranger you could use a USED 5R55E from a 1998-2011 Ranger 4.0l 4x4, same wiring and computer control system
4.0l OHV and 4.0l SOHC have the same bell housing
Rangers used the same 4x4 transfer case(BW1354) 1990-2011, so yours will bolt to any year Ranger 4WD transmission
If you want to roll the dice on a used automatic

Rebuilt 5R55E runs $2,000-$2,500 with new torque converter and 3 year warranty
Installation varies a lot by location and what your LOCAL shops charge per hour, $650-$950 average
If you are going to have a shop install trans then I would have them supply the rebuilt trans as well even if its a few hundred more, so any warranty issues are not an issue to you

At say a high side of $3,500 for new trans installed, with 3 year warranty, that's a cost of $97/month over the next 36 months, would be very hard to find a reliable used vehicle for $97/month, lol
So you should keep it if you do the repair, not sell it, especially if you like it and its in good condition, but that's information only YOU have :)