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NOt to nitpick, but a 1987 240 could not possibly have a factory turbo (they ended, in the 240s, in '84, or maybe '85 the latest), so if you ever have to order any parts for it, you should know that it's a AW-70, not a -71 (only turbo's got the -71 in 240's).
But that said, the others are dead-on correct advising a swap, rather than a rebuild of your own tranny. Rebuilding it is not cost effective, unless the guy is low-balling your estimate, or charges so low that he's likely not qualified or equipped to do the rebuild properly.
Actually, I'm leery that you actually need a rebuild -- AW's, even mere -70's, are so rugged and reliable that it's doubtful you need a rebuild or swap; more likely, it's fluids have been neglected and can use a very thorough flush.
If you accept that suggestion, follow the others' advice about that, but I'd add that you should be very generous with the quantity of fluid you use -- go 20 to 24 quarts through it, to be sure (and it's still cheaper than a tranny swap, let alone a rebuild, even if you use synthetic fluid). I'm at work now and don't have some things I've saved on my home PC, but I vaguely remember that you need to run about 20 quarts through in order to flush just 95% of the old fluid out (because of the remixing/diluting factor to consider when you add new fluid to old fluid); I just as vaguely remember that 99% removal requires about 29 quarts of flushing.
On the other hand, if your car isn't entirely "original" and has a -71 from a previous swap (or if you've got a whole, swapped-in turbo engine + -71 tranny which you didn't bother to tell us), then that's a whole different story.
Regards,
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