My '87 240 has been sitting for 2 days since the rear seal was replaced at a transmission shop (along with the "yoke" and "extension housing" for a total of about $350.

Today when I looked underneath the car I noticed a puddle on the pavement running from the area slightly in front of the shifter stick all the way to the driver's side door and even about a foot beyond it.

Before the car was repaired, the diagnostic conclusion was that only the rear seal (accounting for "85%" of the leak) needed to be replaced for $145.

During the repair I was told that it accounted for 50%-60% of the leak.

Soon after I was told it accounted for 75% of the leak... sound fishy?

The bottom line is that my car still has a pretty bad leak.

Is there a chance that a part they used is no good?

I think I'll take the car back in. $350 to still have a substantial leak doesn't seem right.

The other thing is that my car recently failed the California smog test. The cooling system also needs work.

Is the transmission looking like a money pit? Or is there still hope for the leak being reduced?

I am now trying to weigh if it would be better to cut my losses with this car because it does have over 216,00 miles on it, with a few costly problems...

Any ideas on what I should do?

Another source of a AW-7x leak on a RWD Volvo that is somewhat typical is where the dipstick tube connects to the transmission (pan or housing)? The tube can also apparently suffer metal fatigue and fracture.

Another leak source may be from the torque converter or seal that blow back when your Volvo 240 is in drive, the auto transmission pumping fluid under pressure, so the fluid blows rearward.

The tail-shaft bushing can fail causing the output flange to drift a bit in not so concentric circles.

See your Blue Bentley Volvo Bible and the FAQ here at http://www.brickboard.com/FAQ/700-900/TransmissionAuto.htm.

Hope that helps.

Sorry you got burned by the mechanic.

You can find Volvo mechanics here at:
- http://www.brickboard.com/SHOPS/
- http://www.volvomechanics.com/
- http://www.cartalk.com/mechanics-files

The mechanic did not do right by you. That mechanic may have treated what s/he though was an obvious problem for the AW-7x series on 240s, and it is no unusual, versus cleaning the exterior housing and running your 240 to properly verify the leak source and repair it. (Sounds like, anyhoo.)

As for passing the CA-state emissions, innumerable article already exist on this topic; many for CA-state Volvos. Your is in 1987, you say, so you may have the Bosch Jetronic 2.2 without the OBD-1 diagnostic code reader box. So, verifying failed sensors and the wire harness interconnects requires a multi meter or you may be able to read codes from the Bosch LH-Jetronic and EZK ignition using a test light or multimeter. Search the brickboard for the many article treating this subject. You will find useful information.

As for cooling systems problems, you can search here on the brickboard for the cooling system problem symptoms you are encountering.

Hope that helps,

Peanut Butter & Hunny on Whole Wheat with a glass of Buttermilk.
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It's highly suspicious that you had to spend $350 replacing a tailshaft housing and yoke - parts that in 30 years of repairing Volvos I've never had to replace -- nor have I ever heard of anyone having to replace those parts. When a rear seal leaks the seal - and tailshaft bushing (if there's play in the shaft)- gets replaced - period - end of story - a 1 and 1/2 hour job in a shop - plus the bushing, seal and gasket (maybe $50 for the parts) . I read your previous inquiry and it seemed clear the transmission shop was trying to live up to the reputation of some transmission shops (ripoff pits). My guess would be that they did not completely remove hardened bits of the old gasket between the tailshaft housing and the body of the transmission. The slightest imperfection there can cause a leak.
Did the shop supply you with the old parts? You need to get the car back to them - put on a lift and then inspected by you (bring a friend who knows more than you). I wouldn't hold my breath for satisfaction though. Sorry I don't have better advice - your situation seems to be that of being between a rock and a hard place. -- Dave