If you’ve noticed your transmission only leaks when parked (or during other times too), you’ll want to determine the cause as soon as possible. Too little transmission fluid in your system can lead to serious and expensive transmission damage.

Transmission fluid leaks can be easy to overlook—and when you are able to notice them, it can be hard to figure out where they’re coming from.

So, what causes a transmission leak when parked, how do you fix it, and how can you tell it’s transmission fluid as opposed to something else?

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What is transmission fluid?

Transmission fluid is essential for lubricating your vehicle transmission’s intricate set of moving parts. It also functions as a coolant and helps provide the right amounts of friction and hydraulic pressure to keep those parts in motion.

Different transmission types require different transmission fluids. Automatic transmission fluid is typically dyed to appear pink or red to help make it more easily distinguishable from other kinds of fluids your car uses, but it can darken over time.

Like engine oil, manual transmission fluid tends to be light brown or amber. Some manual transmissions may simply require engine oil for their transmission fluid—but that’s not the case across the board, so always be sure to check your owner’s manual to see what your vehicle requires.

For transmission fluid to work properly, it has to be filled to the proper level in its reservoir so it can circulate through the transmission components the way it needs to. When your vehicle doesn’t have enough transmission fluid, it becomes harder for your transmission to shift between gears.

If you continue to drive your car without the necessary amount of transmission fluid, that extra wear and tear on your transmission components could end up damaging them over time.

That’s why periodically checking your car’s transmission fluid level is an essential part of your

basic car maintenance schedule

MORE:

When should I change my transmission fluid?

What causes a transmission leak while parked?

Transmission leaks have various causes. If you notice your transmission fluid only leaks when parked or you’ve found a suspicious puddle consistently forming under your car, see if you can trace the leak back to its source to determine whether it might be coming from your transmission.

Here are some common sources of transmission fluid leaks—plus what causes them and how they can be fixed.

Faulty drain plug

One simple cause of a transmission leak could be that the drain plug is too loose. If that’s the only problem, fixing it could be as simple as re-tightening the drain plug.

Be careful not to tighten it too tightly, though. This could end up stripping the drain plug, which would then require replacing it.

Damaged seal(s)

A transmission case uses seals to prevent leaks throughout the system. Since they’re made from elastomers or other flexible materials, they can be prone to warping and developing leaks over time and will eventually need to be replaced.

Transmission fluid pan problems

The transmission fluid pan is another common culprit when it comes to transmission fluid leaks. Leaks from the transmission fluid pan might occur if it’s out of place, is cracked or worn, or if it has loose or missing bolts.

Replacing or tightening bolts can be an easy fix, but if you suspect the transmission fluid pan needs to be repositioned or replaced, you might want to have a mechanic take a look.

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Faulty transmission pan gasket

The transmission fluid pan’s gasket could cause leaks if it’s been cracked, damaged, or is out of position due to a bad installation or a collision. Replacing a transmission pan gasket can cost several hundred dollars—which is cheaper than several thousand for a new transmission.

If you discover yours is leaking, it’s a good idea to get it out of the way as soon as possible so you’re not left with a bill for a more expensive problem later.

Dirty transmission fluid

Similar to engine oil, transmission fluid can be subject to debris buildup over time.

If the problem becomes too severe, your transmission fluid lines could become clogged, and the excess pressure could eventually cause the pipes to crack or burst.

Cracked or clogged fluid lines

Debris in the roadway that hits your undercarriage or causes exposure to extreme heat or cold could cause your transmission fluid lines to crack and leak. They can also rust or wear out over time.

If your transmission fluid lines need to be replaced, it could potentially cost anywhere between $70 and $500.

Torque converter leak

The torque converter helps the transmission fluid keep circulating through the system but can develop leaks if it becomes cracked. If that’s the case, a mechanic will probably need to replace it for you, which could cost as low as a few hundred dollars or upwards of $1,000.

Car accidents

Sometimes, even what seems like a minor fender bender can cause damage that might be easy to overlook until much later.

A collision could mess with your car’s alignment, push important transmission components out of position, create cracks or punctures, or cause bolts to loosen or go missing—all of which might cause transmission fluid leaks when parked.

MORE: How to make your car last longer

How to find a transmission fluid leak

How can you tell if the fluid leaking from your car is transmission fluid and not something else, like engine oil?

Transmission fluid typically contains a dye that is pink or red, which makes it easier to distinguish from other fluids your car uses, like engine oil or windshield wiper fluid, if it’s formed a puddle under your car when parked.

That said, depending on the type of transmission fluid you’re using, or how dirty the fluid is, it might be easy to mistake it for engine oil.

The following are some additional signs you might notice if your vehicle has indeed developed a transmission fluid leak:

Low transmission fluid levels, especially if you recently added more fluid (you can check this using your dipstick)

Slower acceleration

Excessive heat coming from transmission system

Burning smell, which could mean your transmission is overheating

Grinding noises

Excessive vibrating while driving, especially when shifting between gears

Check engine light is on

MORE:

How to decide if you should take your car to a repair shop or a mobile mechanic

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How to fix a transmission fluid leak

How you should go about fixing your car’s transmission leak depends on what’s causing it.

In a best-case scenario, that might be as simple as re-tightening a loose bolt yourself. However, more substantial problems like cracks or leaks can be complicated to fix and are usually better left to the professionals.

Not sure where the leak is coming from? A good place to start is asking a mechanic for a transmission fluid leak inspection, which commonly costs between $70 and $100 before any necessary repairs are added into the mix.

If you do need repairs, work like replacing seals or gaskets can cost several hundred dollars. On the other end of the spectrum, if you have transmission damage that’s severe enough, you might have to have your transmission rebuilt or completely replaced, which can cost $1,000 to $4,000.

Will car insurance pay to fix my transmission fluid leak? It depends on what kind of coverage you have and what caused the leak. If you were involved in a collision with another vehicle and the other driver was at fault, in theory, their insurance should typically cover your repairs.

If circumstances warranted coverage under your own car insurance policy, you’d likely still be responsible for paying your

insurance deductible

first before coverage would kick in. If your policy has a $500 deductible, you’re probably not going to get much help for a $70 inspection.

MORE:

How to dispute your mechanic bill

How to avoid transmission leaks

Sometimes they’re inevitable, but preventing transmission fluid leaks when you can is a lot cheaper than repairing them! Here are a few tips to make a transmission fluid leak a little less likely:

Monitor your vehicle’s transmission fluid level periodically, checking for leaks and topping it off if you need to

Change transmission fluid at the required intervals

Practice responsible driving habits, like understanding how to properly shift a manual transmission, to reduce unnecessary wear and tear on your transmission

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FAQs

What does it mean when a transmission only leaks when parked?

It depends. If you’re parked on an unlevel surface, the culprit could be a faulty seal or a misaligned drain pan. It’s also hard to notice a transmission fluid leak while you’re driving—so the leak may be fairly constant, but you can only notice it as the fluid accumulates when your car is parked.

How can I tell if my car is leaking transmission fluid?

Transmission fluid is typically pink or red, which can make it easier to distinguish from other car fluids. It also helps to keep an eye out for additional symptoms, like low transmission fluid levels, burning smells, or difficulty switching between gears.

What causes a transmission leak?

There are a number of causes of transmission fluid leaks. Often, it’s due to a transmission part that’s improperly positioned, punctured, or cracked. Faulty seals and loose or missing bolts can cause leaks, too.

Can you drive with a transmission fluid leak?

How long you can drive with a transmission fluid leak depends on how severe it is—you may want to check your transmission fluid level with your dipstick and make sure the leak has contained itself before driving.

If the fluid level is too low, driving even a few miles could result in serious damage to your transmission.

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