The gears are all chewed up.
SOURCE: 1999 subaru legacy outback with manual trans won't go into gear?
ok maybe it needs adjustments or it may need some trans repairs
SOURCE: 1999 Subaru Legacy Outback 5th gear popping out
WELL IT SOUND LIKE YOUR TRANS IS GOING DOWN YOU NEED TO LOOK AT TRANS FLUID TO SEE IF IT IS CLEAR LOOKING OR IS IT LOOK LIKE METAL MAY BE IN IT DRAIN A LITTLE IN A PAN THE LOOK AT IT IN SOME LIGHT AND SEE IF IT LOOKS LIKE GOLD FLAKES OR SHING METEL IF SO TRANS HAS INTERNAL ISUSES
SOURCE: 2000 Subaru Outback manual transmission rebuild
I would want to see that for myself, or get a second opinion. That really sounds suspicious since they claimed there was rust in a box that was mostly filled with oil. And I can't see any logic in paying a lot of money to fix a transmission that is working. Why don't you take it to another shop and ask them to change the transmission oil, and to save the old oil for you to look at. It would be even better to change the oil yourself. Don't tell the dealer what you are doing. The best thing would be to just pick up your car, as is. If it is a scam, they could put some stuff in the transmission if you give them time to do it. In fact, they may have already done that. I can't say it's a scam, but it sounds like it could be if you haven't done anything that would have broken off teeth in the transmission. And if teeth are broken off you should be able to hear it while accelerating at low speed in each gear.
Testimonial: "Thanks for your suggestions. Today we found an independent mechanic recommended on Car Guys web site. We'll talk w/ him on Monday."
SOURCE: 95 Subaru legacy wagon manual transmission fluid
The dipstick has a black plastic handle in the shape of ring of about 1 inch in diameter. It is located on the left side of the engine (looking from front) behind the spark plugs. Best visible from the passenger side fender location (start looking from the left part of the transmission , the black handle clearly stands out on the white metal).
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