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I recently purchased a 1997 528i. Last week, the ABS light came on and it would not shift out of 1st gear. I brought it back to the place I bought it and they said they put in a new part ($700). Yesterday, the same thing happened. I can drive it in manual mode, but I do not prefer to keep driving it that way. Does anyone have any suggestions on what could be wrong with it? How is the Transmission connected to the Anti-lock Brake System? Thanks!:)
 

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Millions of them.
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Take it back to where you had it fixed and tell them to get it right or you want your money back--it's pretty simple
That's not how used cars work; you buy it as is, with no warranty unless they explicitly tell you that there is one.

OP, it's one of the wheel speed sensors.
 

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Well--they sold him the car--there should be at least 30 day warrenty on the car--then they say this is the part thats wrong--(probably the abs module) and hit him fo another 700 bucks--that there should be a warrenty on--not the selling of the car--they are just throwing money at parts in my book---I would look for wheel sensor as the problem before trying the abs module--but since he's already got 700 in parts which didn't make a difference--may as well try and make good on the lemons he's been given--
 

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Here in the UK if you buy from a car lot you get 3 months automatic warranty, however private you have none whatsoever even if the car blows the engine 2 feet from their drive....If however you buy it on credit its covered by the credit company until your last payment....

As Torque has suggested..wheel speed sensor
 

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I have the same car and mine is doing the same thing. I just had the trans fixed about a hundred miles ago. The car ran great for the hundred miles and then the abs light and traction control light came on and like you said you have to shift it manually. I bought it from a friend who said there were no problems...sure there aren't thats why he is not calling me back he got his money.
 
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