Leaks at the front and/or rear differential pinion seal and from the transfer case are common. Leakage from the transfer case normally occurs at the case-mating surfaces and require removal of the transfer case to reseal.Google+
Car Problem Reports
Jeep Wrangler Front and Rear Differential Pinion Seal and Transfer Case Leaks
Jeep Wrangler Problem
Drive Trains Affected: 4WD, Automatic Transmission, Manual Transmission
Average Mileage: 78,303 mi (25,600 mi - 150,000 mi)
Visitor, 2004 Jeep Wrangler, Manual Transmission, 35,500 mi
im a chrysler technician and own a wrangler myself, this is the bigget problem on the wrangelers up to 2006 the front and rear pinion seals leak. these cars are industructible though nothing can stop the 4.0liter inline 6
Visitor, 1994 Jeep Wrangler, Manual Transmission, 122,000 mi
Currently have a small leak in my transfer case. I got an estimate and it looks like it will cost around $500 to fix.
Visitor, 1995 Jeep Wrangler, Manual Transmission, 118,000 mi
rear end leaking at pinion. transfercase leaking all over.
Visitor, 2006 Jeep Wrangler, Manual Transmission, 68,000 mi
I was inspecting the under side of my jeep the other day and noticed it was leaking. I took it to the dealer and they said it wasn't covered by the warranty. So I'm in the process of having it fixed now!
Visitor, 2002 Jeep Wrangler, Automatic Transmission, 105,000 mi
leak in transfer case.
Visitor, 2005 Jeep Wrangler, Automatic Transmission, 49,670 mi
Both front and rear differentials were leaking and it cost $160 for each ($320) to repair at Scottsdale dealership.
Visitor, 2009 Jeep Wrangler, Manual Transmission, 60,000 mi
Front and Rear Differential Pinion Seal and Transfer Case are leaking. Dealer will not fix.
Told this is the normal with jeeps. Need to take in and have flushed and sealed
Standard leakage from silicone seal at differential. About $150 to repair at dealership.
Visitor, 2001 Jeep Wrangler, Automatic Transmission, 79,700 mi
Recently purchased this 2001 Jeep Wrangler Sahara. Great vehicle - fun ride. Took it in to a well known 4WD specialty shop for a complete inspection and "once-over." They were very complimentary of the condition of the vehicle overall - everything checked out good. However, they noted a rear pinion seal needed replacement. Quoted $700+ which seemed a bit high but they have a very good reputation in the area so I trust their judgement. Don't mind paying a bit more for good, quality work.