P0500 code erratic shifting and engine light on intermittent

Question

Shop replaced the speed sensor, but did not correct problem. One shop said I need a new transmission

Answer 1

P0500 Vehicle speed sensor.

This code if the transmission is shifting erratically, and you set a P0500, Being a Toyota P0500 is not going to cause erratic shifting, you need a output speed sensor code. Toyota when it set a P0500 the instrument speedometer is non operational, or the ABS is non operational.  P0500 that cans cause a erratic shift on a Dodge yes , or Chrysler yes, Toyota NO.