How much do you know about the transmissions on the 3rd gen Explorers?
Thanks.
The automatic rear wheel drive and 4WD Ford transmissions have generally been fairly robust. From the AOD, AODE, 4R70W, 5R55W, 6RXX, they've all been pretty good. There's bigger issues with the V6 engine, if I remember correctly, but Das would know more about that.
The most common transmission problems I see behind Explorers is low fluid, due to the coolers or lines sometimes geting rusty or leaking. The 5R55 family of transmissions no longer have Fluid Dipsticks or Top-Fills, and they are strictly bottom fill with a drain plug and fill plug.
This means they are commonly neglected, and will slip/shudder when Cold or under load if they are low on fluid (and then there is no telling how much damage may have been done or how long its been low). I wouldn't normally touch a 3rd gen Explorer or Aviator with Transmission problems unless I was getting a screaming deal on it because "You never know how bad it may be" and MERC-V is also not especially cheap if you are chasing down a problem.
That all being said; they are reasonably robust/strong transmissions so long as they aren't run out of fluid. If you buy one with the intent to replace the transmission, I'd recommend getting it rebuilt over a Junkyard unit (as you still run the same risk with a Junkyard one of some idiot running it out of fluid).
If you are going to test drive one; make sure the truck is DEAD cold on start, if it was just run before you got there it can hide all kinds of things.
There's bigger issues with the V6 engine, if I remember correctly, but Das would know more about that.
Timing Chains; I typically recommend avoiding all 4.0 SOHC Trucks built until after a late 2004 build date (when they finally changed the design of the tensioner assembly to stop disintegrating every 70K miles....). It wouldn't even be THAT big a deal if servicing the rear wasn't an engine-out repair item....
This is another situation where a 'warm' truck can hide how bad it is. Fire up a Dead-Cold ford 4.0 SOHC engine built around the late 90's (assuming its in decent shape), and you can almost ALWAYS hear timing chain rattle until oil pressure builds because of the shitty design.
Early 4.6 V-8 trucks (02-03?) also have occasional timing chain issues (Which are obvious on cold-start with a 'rocks in a dryer' kind of sound timing chain slack makes), but they are at least serviceable from the front, and is a weekend-warrior type project Vs. the entire engine out situation for the V-6....