Why is your Volvo 240 DL leaking automatic transmission fluid?

Look underneath the car. Is it super clean around the rear of transmission and a little ways down drive shaft? If so, you may need to replace the extension housing gasket and bushings. The piece that contains these parts is at the rear of the transmission where the driveshaft connects. Over time this thing can start leaking pretty good. Fluid will be slung by the driveshaft onto the underside of the car. The high detergent value of transmission fluid will "clean" off the underside of your car, including the factory corrosion resistant coating! be sure to recoat underbody after repair or rust will destroy your ride. Be thorough with the inspection because trans fluid can get in some unexpected areas.