Noises During Shifting Problems of BMW 323

I own a 2000 BMW 323i with only 21,500 miles on it. The car is kept in an interior garage and driven mostly within the city. Until two days ago, I had no problems with the car and never had any indication that there was a problem with the transmission (or anything else for that matter). I backed out of my garage, drove to a store, did my shopping and returned to the parking lot. I turned the ignition on as normal, put my foot on the break and shifted the gear into reverse and tried to back out, but the car would not move. It acted as if it were in neutral but the dashboard clearly read that I was in reverse. There was no warning, no indicator light went on, no noise or sound out of the ordinary. The car did drive forward, so I waited until the cars in front of me left and drove my car to the BMW dealership where I got the car. They refused to give me an estimate of a transmission repair or replacement until I gave them $300 to perform a diagnostic test. I declined and brought it to a local transmission shop near my home. The mechanic removed a pan and showed me the liquid which was blackish in color. He said that it had aluminum powder in it, indicating that something inside probably broke and caused burning. I am currently in the process of deciding what to do next: either get the transmission replaced or have it rebuilt. BMW of north America and the BMW dealership I got the car from refuse any financial responsibility for the repair.

See all problems of the 2000 BMW 323 🔎.

There is an intermittent skreech when in "d" mode on automatic transmission. From a stop, when accelerating moderately, there is a loud skreech when car shifts from first gear to second gear. Car has been inspected 3 times & problem has been duplicated at 2 different dealers. BMW rep. Also acknowledges problem & has seen it before. Claims it is the "intake system" but no fixes are available! also said if a fix comes out, I might not be able to get it unless I am still under warranty! please help, I have also contacted Bmwna & they have taken no action. Also contacted 3 dealers, 2 of which have seen the car & duplicated the horrible noise. Yet no action to fix it. Your help is greatly appreciated.