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Diff oil in transmission potential servicing mistake


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I have recently taken my car into a dealership as I was experiencing a strange high pitched whining noise when driving. The dealership found it was caused by differential oil in the transmission. They said it may have been that the garage that previously serviced my vehicle screwed it up and didnt top up the diff oil properly. Here are the notes from the dealer: Checked oil levels and noted front diff low and diff oil in transmission, topped up front diff oil. They have mentioned there is thousands of dollars damage to the front diff as a result however it should be covered under my mechanical warranty. It's only going to take 2 days to repair so as long as everything is fine with the claim it should all go through smoothly. Just wondering if anyone else has experienced this? The car is a 2004 Legacy gt, automatic with 54000k's on the clock.
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It is a very common mistake among new subie owners.

The diff. dipstick is on the pass. side, the tranny dipstick is on driver's side.

One of the reasons why this happens is because they aren't labeled what is what.

 

Now, anyone with some common sense should know that gear oil and ATF fluid look/smell nothing alike. But, it would help the unaware.

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Bad news the warranty company assessed the car and stated they would not cover the repairs due to servicing error. I am going to take the garage to court. I am getting a quotation tomorrow on the repair costs. The dealership I have taken the car to to investigate have said there is damage to both front and rear diffs. Any advice? I assume I would win in court when I have statements from the warranty company and dealer proving it was servicing error?
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Looks like they are now covering it. I asked them to prove it was servicing error and suddenly they sent another person to check it. They took it apart and determined it was a manufacturing defect. Will take 1-3 weeks to fix but is fully covered.
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The diff. dipstick is on the pass. side, the tranny dipstick is on driver's side.

One of the reasons why this happens is because they aren't labeled what is what.

 

Now, anyone with some common sense should know that gear oil and ATF fluid look/smell nothing alike. But, it would help the unaware.

 

I was confused by this for a minute until I realized you are talking about the 5EAT. :) I have a 5MT, the transmission and the front diff share the same fluid so there isn't a second dip stick.

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