I took my 99 S320 (109,000) in for CA smog and it passed great, with no problems. On the way home the trans began to slip a bit and then it went into limp mode. I got the car towed home. My check engine light is on and the code read P0763.

I took it to a local Mercedes shop and they told me they think the transmission is toast and that I should have been changing the fluid every 40K. I told them I thought it was a lifetime fill. They said no there have been too many problems. They say the dipstick fluid looks black and the only computer codes they are getting are from the trans. ($98.50 diagnosis).

They want to replace the trans with a rebuilt $3700 plus $800 labor. Does this seem reasonable? Should I consider towing for a second opinion? I doubt the car is worth much more than $10K . Just nauseus right now.

Thanks for any knowlegable advice . chris