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No cliches from me.
It's leaking on the exhaust: It is likely to be leaking from the transmission cooler lines. On the 200 series, they are held against the bellhousing by a bolt-on bracket that eventually chafes through the lines after a period of time. What ends up happening is that the fluid dumps directly on the exhaust since the line (or lines) are sliced wide open.
There isn't much on that side, aside from the transmission pan and cable. But that wouldn't leak onto the exhaust.
The trans cooling lines are around fifty or sixty dollars apiece, pre-bent, at the Volvo dealer. You can also effectively put a coupling in that gets rid of the bad section.
Bottom line, have it fixed. If it isn't leaking from the trans cooler line, it could be leaking from somewhere else in that general area. A leak that big is certainly easy to identify. That is too much money for just an "inspection". People expect to pay $$$ for transmission work, so shops charge a fortune to do simple things (sometimes simple things, I should say).
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Chris Herbst, near Chicago.
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