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If you feel you need to disclose the problem - then try this approach:

First take the car to a transmission place & ask them what it would cost to fix the leak. Then go to a CarMax and ask them for their best "buy bid". If no CarMAx, go to several dealers.

Take the highest buy bid and subtract the cost to repair the car - if the dealer's trade price is higher than the difference - I would mention it to them, if it's lower, I wouldn't.

Dealers pay their employees to properly inspect a car & build in a "repair amount" needed to repair the car - if they are going to sell it on their lot. If they aren't keeping the car, then it doesn't' matter anyway.

You said they didn't disclose problems to you when they sold you the car - so why are you worried about it? I agree it's best to be honest , but since you were treated dishonestly by this dealer - I wouldn't worry about this too much.

As an aside, several year ago I mentioned to the dealer I was trading my car that the car needed several items to be repaired. He said -"don't worry about it - they will catch it during the inspection." So - I didn't worry about it, and I was offered a fair trade when I considered the cost of repairs and the tax savings.

Good luck
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