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Need transmission overhaul? 700 1989

Hi,
I wrote back in Oct. (10-6) about my transmission troubles. On Oct. 15, they found the old filter to be clogged with rust and that there was some water in with the fluid and they replaced my transmission filter and fluid. After the service, my car was better.

For awhile now, sometimes in reverse, the car would jerk especially at the beginning, rather than move backwards smoothly. I had left my car idle for 2 weeks while I was away for the holidays. On my first drive after being away, I heard the noise that in Sept indicated that the filter was clogging. But I haven’t heard it since.
In the last week, several times after the car was warmed up and I tried to go in reverse, the car wouldn’t move, and then it would jerk a lot, and once made bad clunking sounds. The transmission guy said over the phone that he didn’t think changing the fluid again would help, that I probably need the overhaul. The overhaul cost starts at $1400/$1500 and up.

Back in the fall I researched the cost of getting a used transmission, shipping it to Hawaii where I live and having it put in, which would likely cost under $900 total.

My choices now are to
1) try to replace the filter and fluid again (it costs about $100), although the transmission guy said it may not help the reverse problem.
2) have it overhauled - $1400 +
3) get a used transmission put in.

My car has 98,000 miles and is an 1989 740 GL wagon. I’m a poor graduate student and want to spend (put on my visa) as little as possible since my current income doesn't meet my expenses.
If I go the used transmission route, someone on the list before said I could get one from a newer car, since it would work with my car.

Thanks in advance for your advice and thoughts.
Aloha,
Katalina






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