I have a transmission oil leak on my 1998 V90/965--the rear 1/3 of the transmission pan is wet and it seemed to be the pan gasket. However, the Volvo dealer said that it was leaking from the Selector Shaft Seal--the Gear Position Sensor, and says it was difficult job to fix and would cost $807 to repair.

I've never heard of a leak from there, looked at AW30-43LE transmission diagram and the gear selector is on top on the unit, so why would the rear of the pan be wet. Wouldn't think that fluid would be there.

Has anyone heard of this or is the dealer just trying to rip me off? They had changed the trans oil earlier, and some years ago had changed the transmission mounts because of leakage weakening them--charge about $500 for that.

The transmission pan and screen had been changed earlier--I am original owner, and since then, the trans oil had been changed without dropping the pan a few times.

Is it legit or am I being set up for a ripoff? I did not agree to the total $2,300 repair job, including $807 for this transmission leak.