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The VSS for the 2007 Mazda3 can be found at the back of the transmission near the bell housing area, below where the ECM and battery are located. Replacing it is straightforward since it is secured by just one bolt and three wires from the engine harness. You can buy a new aftermarket replacement, such as the Standard Intermotor Vehicle Speed Sensor part SC154, for about $70 from O'Reillys. If there is an issue with the VSS, the check engine light may come on, although not always. You may also notice rough gear changes and the speedometer not functioning properly.
The speed sensor for the 2007 Mazda 3 can be found on the transmission output shaft.