I just loaned my new used '91 740 wagon to a friend. She says that when she went to leave a restaurant, the lights would not go on, only the parking lights. Also the turn signals would not go on. So she drove home on backstreets with just the parking lights. When she got home and shifted from D into N, a terrible grinding noise commenced, so she moved the lever (automatic) to R and the noise stopped. Then she tried to move it to P and the noise started again. So she turned the car off with the lever in R. After the car was off, she moved it into P.

Two minutes later, a friend started the car and everything worked perfectly, including the headlights and turn signals!

Am I in for a major repair? The car is under 90-day warranty, but the warranty only pays 50% labor and 50% parts. (I've had the car less than 2 weeks, bought it from a dealer who took it as a trade-in.)

Thanks in advance for all your help! I hope my wagon doesn't wind up costing me as much as Mike's - I payed more $$ up-front ;-|

Jenn