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Hi,
I Just bought 1995 325is it is auto transmission, and i having problems: looks like my tranny is about to go out: very strange problem though, it runs goes to gears better when it is cold, when it worms up it would start acting like crazy, rpms will go up to 5000 with no reason, reverse takes 3-4 seconds to engage, i took it for a spin went up to 70m/h but i could not tell for sure which gear my transmission was into(i would assume it was in 4th because rpms were never over 3500), very strange ... Also if i would switch from AT to Manual using switch i can start car in any gear ... so i would assume it is not mechanical problem. But who knows. Any Idea where to start. Thanks.
 

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dont think AT trans are supposed to be serviceable but you can start by checking the AT fluid... maybe change it and the filter ... for the hows may be better asking one of the "experts"
 

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+1 on checking the transmission fluid level. When the car is cold, there is more fluid in the oil pan, as it warms up the pump will circulate more fluid throughout the transmission and if the fluid level is low, may not be picking up enough to keep the car in gear.
 
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