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P0501 Severity
Once the vehicle's onboard system no longer detects the issue, most codes will disappear on their own. If your vehicle still has this code, however, it should be properly diagnosed to avoid a more serious problem.
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Moderate severity codes might not threaten the vehicle's safety or functionality immediately, but you should still get it diagnosed within a reasonable time frame to keep your car running well.
The Vehicle Speed Sensor tells the engine control module (PCM) how fast the vehicle is going. This information is sent to the speedometer where the road speed is displayed in miles per hour or kilometers per hour. In addition, this information is usually shared with other vehicle systems such as the Transmission, ABS, Traction Control and Power Steering. When the PCM detects an inaccurate or irrational reading, it will set code P0501.
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OBD-II Code P0501 is defined as a Vehicle Speed Sensor Range/Performance
What Does this Mean?
The purpose of the Vehicle Speed Sensor is to send data or "tell" the powertrain control module or PCM how fast the vehicle is going. This information is sent to the speedometer where the road speed is displayed in miles per hour or kilometers per hour. In addition, this information is usually shared with other vehicle systems such as the Transmission, ABS, Traction Control and Power Steering. The Vehicle Speed Sensor can be located in a number of places such as the rear differential, an output shaft of the transmission, in or near a wheel hub or be part of or attached to, the speedometer.
When the code P0501 is set, it means that the Powertrain Computer or PCM isn't seeing a proper or "rational" signal from the Vehicle Speed Sensor. Write down the freeze frame data for the P0501 code and then, using a serial data capable scanner, take the vehicle on a test drive and duplicate the code setting conditions that were saved in the freeze frame data. Verify that there IS or is NOT a smooth steady signal coming from the VSS by finding and observing its data PID. If there is no VSS signal, I visually inspect the VSS and if it "looks" normal, I get a labscope waveform directly from the sensor. This has multiple advantages, because your bypassing the VSS wiring and connector. If the signal looks normal and steady then I would suspect a wiring/communication problem between the sensor and the PCM. If the sensor has a poor scope waveform, then you may have located the problem. I've also had instances where the signal is consumed by a component and the signal disappears or becomes too weak. I've seen an electronically defective speedometer or instrument cluster do this.