Noticing red fluid under your car and struggling to shift gears can be signs of a serious issue.
For all-wheel-drive or four-wheel-drive vehicles, a damaged transfer case could be the culprit. Left unchecked, this issue can cause major drivetrain and transmission damage.
That’s why it’s crucial to replace this component immediately.
Concerned about costs?
We’ll walk you through transfer case replacement cost, key warning signs, and whether a repair or full replacement is your best option.
This Article Contains:
- How Much Does a Transfer Case Replacement Cost
- Is it Worth Replacing a Faulty Transfer Case?
- 4 Warning Signs You Need a Transfer Case Replacement
- How Are Transfer Case Issues Diagnosed and Fixed?
- 3 FAQs About Transfer Cases
How Much Does a Transfer Case Replacement Cost
Here’s a breakdown of the average cost and pricing factors:
A. Range
Replacing a transfer case can typically range between $1330 and $3400.
This includes:
- Parts cost: $850 to $2800
- Labor costs: $480 to $600
NOTE: The labor costs for this vehicle service are typically high because it takes around 3.5 hours to finish. Moreover, the transfer case is a heavy component that requires multiple hands to complete the task.
B. Factors Affecting Cost
The average cost of replacing a transfer case varies depending on your vehicle’s model and the location of the repair shop.
These additional factors will determine your total bill:
- Transfer case material: Cast iron transfer cases offer exceptional durability and affordability but are heavy. In contrast, aluminum transfer cases are much lighter but more expensive.
- The extent of damage: If only specific components need fixing, a full transfer case replacement may not be necessary, reducing repair costs. As a result, the final repair fees can vary widely depending on the issue. For example, if the transfer case has a hole, you may only need to replace half of it, which costs between $450 and $675. Similarly, the fees for replacing a damaged encoder ring can be between $425 and $800.
- Original Equipment Manufacturer vs. aftermarket parts: OEM parts are more expensive but offer a better fit and reliable performance. Aftermarket alternatives are often cheaper but may lack durability.
- Related repairs: If related components such as the drive shaft, u-joints, or seals are damaged, the total cost increases. For example, replacing a transfer case output shaft oil seal might cost an additional $240 to $280.
Is it Worth Replacing a Faulty Transfer Case?
Yes, absolutely!
A bad transfer case can strain the axles and drive shaft, causing shifting issues and difficulty turning. It can lead to serious transmission damage, costly repairs, and even total motor vehicle failure.
Most importantly, it jeopardizes your safety on the road.
So, if you notice unusual noises, gear-shifting problems, or leaks, contact your trusted repair shop for vehicle service immediately.
4 Warning Signs You Need a Transfer Case Replacement
Your transfer case might be malfunctioning if you notice:
- Strange noises: Grinding, humming, or whirring sounds from underneath your motor vehicle.
- Fluid leaks: Pooling red liquid under the car could signal a leaking transfer case.
- Difficulty shifting between low and high gears: In a four-wheel-drive system, the low-range gear helps the vehicle move steadily in tough off-road conditions, while the high-range gear is used for normal driving. If your vehicle has trouble switching between these modes, it could indicate a problem with the transfer case.
- Four-wheel drive won’t stay engaged: If your vehicle keeps slipping out of the four-wheel-drive mode, the transfer case could be malfunctioning.
How Are Transfer Case Issues Diagnosed and Fixed?
If you lack automotive repair experience, you should avoid replacing a transfer case yourself. Improper handling may damage the transmission or drivetrain. That’s why it’s best to trust a professional who has the expertise and precision required for the job.
To diagnose the issue, mechanics typically use a scanner to read fault codes stored in modern motor vehicles. If the scanner doesn’t indicate a clear problem, they may take the vehicle for a test drive to check the symptoms and pinpoint the cause.
If there are signs of trouble, here’s what a mechanic will do:
- Drain the transfer case fluid, remove the drive shafts, and disconnect it from the transmission.
- Detach all electronic connections.
- Remove the damaged transfer case and inspect it to determine whether a repair or full replacement is needed.
In case a replacement is required, the mechanic will:
- Check the drive shaft joints, seals, and couplers for wear and replace if needed.
- Install the replacement part or new transfer case.
- Refill with the manufacturer-recommended transfer case fluid specified in the owner’s manual.
3 FAQs About Transfer Cases
Here are the answers to some commonly asked questions on transfer cases:
1. What Is a Transfer Case and How Does it Work?
Transfer cases are exclusive to all-wheel-drive and four-wheel-drive motor vehicles; they are not present in front-wheel-drive or rear-wheel-drive cars.
A transfer case takes power from the engine (through the transmission) and splits it between the front and rear wheels. This helps all four wheels get the power they need, especially in rough or slippery conditions. Power is transferred using either gears or chains.
2. How Long Does a Transfer Case Last?
Transfer cases are built to last the lifetime of your vehicle. However, neglecting routine maintenance or subjecting them to excessive strain can reduce their longevity.
Here are two common causes of transfer case failure:
- High mileage: Over time, as your vehicle racks up mileage, its parts, including the transfer case, naturally wear down.
- Shaft seal failure: If the shaft seal wears out and starts leaking fluid, it can lead to serious issues with your transmission and gear shifting.
3. Does a Car Warranty Cover the Cost of Fixing a Transfer Case?
If your vehicle is still under insurance coverage or within the manufacturer’s powertrain warranty period, the transfer case replacement may be covered.
However, if your manufacturer’s warranty period has expired, an extended auto warranty coverage could help cover repair costs.
Remember that some extended warranties have coverage limits based on your car’s value, which might not fully cover the repair. You should consult your dealership before getting a repair or replacement.
Restore Your Drivetrain with a Transfer Case Replacement
A bad transfer case can lead to severe drivetrain damage and mean big repair bills down the road.
Skip the hassle — AutoNation Mobile Service brings all kinds of car repairs right to your driveway, seven days a week and offers upfront pricing. We also back our work with a 12-month, 12,000-mile warranty for added peace of mind.
Contact us today for your transfer case issues and other car repairs.