Fluid Condition
Along with fluid level, it is important to check the condition of the fluid. When the fluid smells burned, and is contaminated with metal or friction material particles, a complete transmission recondition is probably required. Be sure to examine the fluid on the dipstick closely. If there is any doubt about its condition, drain out a sample for a double check.
Automatic transmission fluid when new is red in color. The ATF is dyed red so it can be identified from other fluids used in the vehicle such as engine oil or antifreeze. The red color is not permanent and is not an indicator of fluid condition. As the vehicle is driven, the ATF will begin to look darker in color and may eventually become brown, and have a unique odor that may change with age, this is normal. Odor and color cannot be used to indicate the fluid condition or the need for a fluid change.
After the fluid has been checked, seat the dipstick fully to seal out water and dirt.