I always thought these two terms, transmission and transaxle interchangeable, but the more I read, there are nuances that make them different. Although they serve a similar purpose.
What's the difference between the two, and is there one that is more reliable by design? What should we look for in a good transmission and a bad one, versus a good transaxle and a bad one? And should we look for cars with a transmission or a transaxle, or does it even matter?
I'm not sure what the "official" definition is, but I've always considered it to be a transaxle if the differential is part of the transmission. Typically the case for front drive and rear-engine cars, but there have also been front engine cars with rear transaxles such as the original Pontiac Tempest.
It's a portmanteau.
Transmission + Axle = Transaxle.
You typically find transaxles in front wheel drive cars with transverse oriented engines. Because the differential is integrated with the transmission, it is lubed by the ATF so it doesn't require separate service.
Technically, the transaxle might be more reliable because you don't have slipyokes, universal joints, and pinion seals to deal with. But it's not like you really have a choice in the matter. Whether you get a transmission or transaxle depends on the type of vehicle you buy and if you want front wheel drive. (FWD is the right choice for most people).
https://en.wikipedia.org/wiki/Automatic_transmission
https://en.wikipedia.org/wiki/Transaxle
Whats reliable or not ?? - ALL depends on the design and who manufactured it. Some are very durable and have withstood the test of time and some were terrible and got a reputation for being a piece of junk and were discontinued.