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HELP - Looking to buy 1990 740 GL wagon - - - after test drive 700 1990

i just got back from test driving it. its really clean, looks great, everything seems sound. except for i think there is an exhaust leak and it shifts funny.
here's what happens: when i put it in drive, it'll go slowly to 1700rpm, and you hear it shift, then it very slowly climbs to 2000 rpm and shifts again, and then again. while driving it around town it never went past 2000rpm and never went under 1500rpm. that was whether i floored it or took it easy, it had the same symptoms. it was VERY slow, had no get up at all. But, if you shifted it, L to 2nd to D, it'll accelerate quicker and the rpms will increase normally. whats the deal? is the tranny shot?






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