Just got off the phone with local Ford dealer after taking my 98 Contour SE 4cyl/Auto in. I was having some frustrations with the transmission starting in second instead of first occassionally. The "intermittent" nature has progressed into a "majority" situation - so most of my accelerations begin in second gear, then click into third and fourth. A good deal of the time, the shift into 3rd causes the "O/D OFF" light to blink and that continues until I shut the car off.

The shifts are smooth and the transmission has always been serviced on schedule. The transmission fluid was changed by the Ford dealer last weekend and nothing abnormal was reported (no metal, not burnt, etc). The car has 72,000 miles of mostly highway driving. I thought I might have a bad sensor that was causing the problem and had seen several posts regarding a "Transmission Range Sensor" that seemed similar to my problem.

The Ford dealership ran the codes and they said the transmission is basically "melted" and getting the "wrong gear ratios". They said that they "do not recommend repairing this model transmission" and quoted me a replacement cost of $2661.18 plus tax.

OK, fellas, let me hear from ya. What's my next move?


98 Contour SE 4cyl