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Got ripped off used car we purchased

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Hello I've been following you on YouTube for over a year now always been so helpful.  Just recently I got hurt broke my leg in car accident they hit me from behind totaled car. My wife and I seen a good deal on a 07 volkswagen golf rabbit for 2k negotiated to 1500.00 that was all our savings available.  Test ran it had it on for over an hour no overheating drove amazing shifted smooth gears no shaking no rattling car seemed perfect 170k original miles no accidents. Drove it back home over an hour drive here in Los Angeles.  Today is the second day I have the car my wife took it to work this morning she's about 30min drive away about 15min in she called Mr saying a red light on dashboard came on looks like a flag or thermometer with waves under it in red began to flash the cars temperature gage was normal in the middle no signs of heating no smoke not noticeable just the light . She made it to work before coming home I had her check water levels she said it needed about 3 water bottles worth light went off made it home no issues.  When she arrive home I left car running for another 30 min then same red light came on but no signs of overheating. I then shut car off after 5min of light being on and 2 mins after I hear a loud water leak under car. I checked it was a mixture of water and oil . I drove car around the block to see if there was any difference I noticed after light and leak when car is hot it doesn't shift as smooth lags a big to catch gear and I also noticed the battery light go on for about 5min then went off. So can you please tell me I'm not totally screwed out a transmission or is this common and fixable. I can't afford the mechanics closes to me just the diagnosis is 300$ I'm off work because leg wife is bedridden medical issues and I have a 6year old daughter to look over and take to and from school now with no good car no money I need to see if I'm completely at a loss or is there still hope with this car.  I need to get it up and running to get back to driving for lyft to pay our rent or will be homeless this month because of this bad purchase and unable to drive to make ends meet until my leg heals and I can get back to my old job.my number is <personal info removed> chris.  Thank you God bless.

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Automatic transmissions do not like water so yes it is probably toast If water got in it. Only thing I can think of causing water to get into your transmission is bad radiator. If you have only had it two days then you can take it back to the dealer, there are laws for knowingly selling lemons.  If it was a private sale more than likely you are stuck with it. STOP driving it. Anything further will definitely cause damage. If it isn’t in your transmission and is indeed oil then you need to check engine oil see if you have water in it. If so you are looking at a blown head gasket. Fixable but pricey. 

Check trans fluid see if water is in it. An overheating transmission will have shift problems. You really need to determine where the fluid is leaking from. If it is coming from the radiator and not mixing into the transmission then you should only need a radiator. If it has indeed gotten into the transmission then you need to determine why, fix it, and flush the transmission. I hate advising a flush but in this case if water has really gotten into it you have no choice. After that is done see how your transmission behaves. 

And not to sound like an ahole, but if you have been watching Scotty for awhile then you should know, always have a mechanic check out any vehicle you are purchasing. 

In addition if it is head gasket and you are getting water into your oil then a product like bars stop leak is not an option for you. It will just be a nail in the coffin for your motor.

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If water came gushing out of the car then you probably blew a hose or something.  If there's oil and coolant mixing then the head gasket is blown too. When that happens the car needs to be towed. never drive it like that. You can stick a fork in that car because it's done.

 

Sorry, but from my own experience, VWs are rolling pieces of total garbage and you never should have bought it. Scotty warns people all the time.

gee, back in the day, vw's were great cars. what happened?

@mittegag They started making them in Mexico/S.America

VW quality started going downhill when they started making the Super Beetle, and water cooled engines.

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