That's almost exactly what I got last year- a 77 240D auto with a "no reverse" condition for $500. After hand tightening the reverse band, it works fine. I could even look down and see the shiny metal of the adjuster where it backed out.

There are more where that came from.

That, as well as the corollary in 722.3xx form, the "reverse only, no forward gears" B2 piston fix. Except this is easier if you know about it

Rick

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80 300SD (129k mi) 82 240D stick (193k mi)77 240D auto - stick to be (153k mi) 85 380SL (145k mi) 89 BMW 535i 82 Diesel Rabbit Pickup (374k mi) 91 Jetta IDI Diesel (155k mi) 81 VW Rabbit Convertible Diesel 70 Triumph Spitfire Mk III (63kmi)66 Triumph TR4a IRS (90k mi)67 Ford F-100 (??)