Harsh Downshift in 2003 300M Special -- Should I Continue to Drive?

My '03 Chrysler 300M Special has 78K miles and has been regularly serviced. Just this week a problem occurred with the car when decelerating: at exactly 32 mph on the speedometer, the car “kicks” or bumps/shifts harshly. This happens only when the car is slowing and only at 32 mph. Other than this issue, the car drives, shifts, rides perfectly.

I took it to the dealer yesterday. I had this problem once before at 35K miles, and it was a bad sensor. Then, the dealer replaced sensor and reprogrammed the car. No problems.

This time the dealer thinks a seal may be bad in the transmission, though fluid level, color, smell were fine on inspection. The dealer wants to replace tranny with a 60K used one (12K warranty) for $1500 – or a Chrysler refurbished one for $3500.

I read all night about TCM codes --I reset the fuses but still the harsh downshift. I am not ready – yet – to shell out big money for a tranny that has just 18K fewer miles than mine. Is there something else I should check? Inspect?

Am I damaging the car by driving it as is? Thanks for your time and help. I was supposed to go to family for Easter, but I don’t know if I should drive or not.

disclaimer I’m not any kind of transmission expert. That said, I know these transmissions will increase the line pressure to maximum to prevent damage if a fault is detected. This protects the clutches but can cause harsh shifts. If you’re worried about it, I’d only drive it as far as a competent transmission shop and have the tranny’s computer scanned for fault codes. Avoid any shop that wants to disassemble the transmission and charge you for it just to give a ballpark diagnosis. Don’t be afraid to get a second opinion if something sounds fishy.