My 92 240 wagon with over 275,000k transmission started slipping on the way home during an extreme rain storm the last night. I immediately stopped and checked the fluid. It was down some, a pint. I added it and continued homeward. The slipping worsened as I approached my driveway about 8 miles. As I pulled into the driveway, it would hardly move. It did go, but also left a trail of the remaining trans fluid. I checked and there is no fluid left. It has been raining since then and I haven't been able to look under the car. What would have caused such a slippage and leak to have occurred? Any ideas? Do I need a new transmission? I love the old car, but is it time to say goodbye?

Thanks

 

You've obviously got a serious leak. Without inspecting it, there's no way to accurately say where the leak is. In heavy rain, I wouldn't be surprised if one of your cooler lines - perhaps already rusted - didn't jiggle enough to spring a leak.

Did your tranny act okay immediately after you added fluid? If yes, you may still be okay, assuming the leak isn't cost-prohibitive to fix.

Unfortunately, if your tranny is shot, it'll probably cost more to fix than the car is worth. Good used AW70s are a little hard to come by, and a complete remanufacture is going to cost over $2,000.

 

Here's the thing...ADub's don't usually slip as a result of low fluid until they're more than a quart low. Still, the fact it's spewing fluid may mean it was bit lower than you could see in a rain storm. On a 240, there is a stabilizing mount on the transmission lines near the bell housing. Over time, it is common for one line to rub a hole into the other. The lines are indeed the main source of leaks of the nature you describe. Over the years, it's not uncommon for idiots, in their haste to swap a radiator, to end up cutting one of the lines near the radiator for convenience and then splice w/ a piece of rubber hose. Seldom is a proper rated hose used, so it could be as simple as that. The lines on a 240 look like this when newish...

You haven't filled out your profile so I haven't a clue where you live, but if you're getting rain, it ain't Texas! Cars driven in the north have issues with the lines actually rusting out over time.
I certainly would not give up on the car quite yet. If the transmission is shot and you choose to rebuild/replace, go with an AW71 found in turbo 740's and turbo 940's. The transmission is much stronger and behind an n/a 114 hp engine should last a long time. Here in Texas, AW 70's are only a few hundred dollars used and an AW71 usually $300-400. IMO, AW70's aren't worth rebuilding while the AW71 is. It is a bolt in replacement; the only difference is the shifter linkage which just gets swapped on prior to installation.