I was at a red light and suddenly my Fit wouldn't go into gear. Got a tow and they told me the transmission is done, one the gears was damaged. Is that pretty rare for car with only 75k miles?

 

Manual or auto? Did a dealer or mechanic you trust tell you that? I'd always suspect a clutch first.

 

sorry, it's an automatic

 

Ever replaced the ATF? At 75K miles its pretty old (ESPECIALLY in the stop & go environment that is NYC).

If your ATF was never replaced you might only have clogged solenoid gasket screens. These are external to the transmission..might be worthwhile to check, not much to lose.

Anyway, I've not yet heard of a Fit AT dropping a gear, EVER.

 

Yeah, 1st I've read too and there are probably a gazillion automatic GD3's with tons of miles that have never changed their transmission fluids.

 

To O.P.
Any motion in reverse?
Do the idle drops when going from P to D?
Grinding noise when going from D to P??
Before tearing transmission down check the passenger side drive shaft!!

 

there was a large thunk sound when the light turned green, when I shifted, there was bit of a grinding sound...

once of the gears got damaged so I'm getting a used transmission put in. I don't think I ever changed the ATF, but it wasn't dry...

 

The axle is likely popped out from intermediate shaft CHECK THIS FIRST!!
The gear CANNOT break like this!!



the piece to the right of the round aluminum bracket..

 

Yup, it's also possible that an axle has snapped at the collar on the driveshaft (due to rust).

 

thud or clunk -- from broken axle
grinding in park from trying to lock the spinning output shaft

 

Broken axle should be easily seen if you look.
Rust weakened it and it broke where a rubber donut was wrapped around the middle of the shaft.

Replace original axles. Very common in the rust belt.

The aftermarket axles I installed in mine have no rubber (damper) covering the center of the shaft.