The short-wheelbase Caravan III presented a more manoeuvrable footprint for family buyers seeking American MPV character without the sheer bulk of the extended model, competing in European markets with vehicles such as the Volkswagen Sharan. It retained the hallmark low floor, easy ingress and supple ride, but its long-term reliability hinges heavily on engine and gearbox maintenance. Preserving regular Dodge Caravan maintenance ensures this versatile people carrier remains dependable in daily duty.
Powertrain offerings ranged from the base 2.4-litre four-cylinder petrol and the European-market 2.5-litre VM Motori turbodiesel to Chrysler's smooth 3.0 and 3.3-litre V6 engines. The four-cylinder engines demand regular cambelt changes, while the VM diesel is notoriously sensitive to overheating and head gasket failure. The V6 units, paired with the electronic 41TE gearbox, demand spotless transmission fluid to prevent hydraulic valve sticking.