I bought an allroad last month (August, 2013). It's a 2004, 2.7t Tip and it drove fine for two weeks and then started slipping. One time it stalled at a stop light. Another time, the RPMS revved up and then it slammed into gear. Finally, it stopped working, though 1st and reverse were OK. A local shop said that I needed a rebuild. I owned the car less then a month when these problems arose.

My question is : can a transmission really bite the dust in less than a month, or did the previous owner know about the problems? I have to prove that the owner knew the car was unsafe or defective in order to try and get my money back under the Mass state lemon law. He is not offering to help. I am out $2700 for this fix and the car is only worth around 6-7k. Definitely bummed out - feeling like I got burned.

 

Have you had the car scanned to see if there are any faults? It sounds similar to the torque converter problem, but they seem to usually lose reverse as well when that happens. Some '04s had the updated seal and weren't supposed to fail but it's a notorious transmission for issues in the Allroad. And "usually" you would notice symptoms for longer than a month but that's a tough cookie to prove. Good luck.