Exchange or flush?
A fluid exchange involves draining the fluid that is readily available and replacing that with new fluid. A "flush" takes that further by removing all of the fluid in your car and replacing it. A flush also involves disconnecting the cooling lines from the radiator. A flush also does not include changing the filter, which may also be needed.
Signs of worn fluid
Transmission fluid should be bright red. if it is brown, or dingy looking, it may need to be replaced. The change in color indicates it has lost its lubricating ability. If the transmission slips or makes noises, it needs to be serviced, and often that involves a fluid exchange. Another sign is a leaky transmission. it has a lot of moving parts, and there is a lot of fluid in the transmission, and it tends to leak when there is a problem.
What happens to your transmission?
When your transmission is not lubricated properly, it cannot shift gears as well as it was meant to. Failing to change the fluid can result in damage to the interior of the transmission, which means even more expensive repairs will be needed. A bad transmission will slip at first, and make noises. Often it will suddenly stop working and your car will not move at all. Often reverse stops working before the forward gears stop. If that happens you will need major repairs, and may even have to replace the transmission. It is important then to keep an eye on the fluid and make sure it is at the proper level, and that it is not worn out.
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