Volvo Repair: Volvo 240 sedan transmission issue, abbotsford bc canada, volvo 240

Question
My son recently bought a 240 Volvo Sedan in very nice condition. 244Kms. We had a pre-purchase inspection done & our Volvo mechanic gave it thumbs up. He warned us about a worn bushing in the automatic transmission & that there was a minor leak, (where main shaft exit the transmission housing) which we scheduled for repair. He said to keep our eyes on the transmission fluid level until we bring it in for repair. However we neglected the fluid check up.  We live near Vancouver, BC, & my son has made 3 or trips to town. It's about a one hour trip each way.
This weekend, he called us from town & said the transmission wouldn't shift in gear.
I suspected that he had lost transmission fluid & we drove to meet him and found that there was no fluid left in the transmission. Transmission would not shiftat all. So we added about 3 quarts and half & then transmission came back to life. We then drove the car back home.  In the D position the car would drive but I couldn't feel it shifting in overdrive. Moving to R position I could feel the gear engaging, as well as moving it manually to lower gear 2 & 1.
When accelerating on the highway the car would shake & it seemed like a shuddering coming from the transmission. I couldn't notice clearly the shifting of gears. It's almost like it was stuck in one of the gear. No power over 80 K. Could barely reach 100Kms per hour
The next day I checked the level of transmission fluid. It was empty again, so I must have lost my fluid on the trip back. With the car idling I shifted the gear in all positions & all gears were engaging normally. But I did not drive the car as my plan is to take it in for repair.
So my question is:
Is the transmission shot or is there hope? Should I drive the car to the garage, 10 Kms away or call the flat bed tow truck. What kind of damage can I expect?
Thank you for your advice. Much appreciated
Jacques Boyer
Abbotsford, BC, Canada

Answer
Hi Jacques,
           It is important to know that this trans. is not able to take abuse...they fail often...loss of fluid is biggest reason...if ever you have to be correct..the trans will be the a failure you could have saved...
           Be sure to use the CORRECT fluid...4 diff.types are available..
           If you have the good fortune to save your trans..by replacing the tailshaft seal you are a lucky man.
             I assume you will have job done by a capable mechanic...actually,its a fairly straight forward job..,.the hardest part of the job is..putting in the new seal without trashing it.
          DON"T drive the car to the shop if its leaking that badly...the bottom of the car must be coated in tranny oil.
               Good luck,
                        Bilbo