2006 BMW 325xi Transfer Case Output Shaft Oil Seal Replacement Cost

A leak may be noted at either output shaft, where the driveshafts connect. Abnormal noise while driving or turning may be noted as a result of low fluid level.

A failing transfer case output shaft seal will first show signs of seepage, that is, the drive shaft and output shaft housing will begin to show signs of contact with oil, though droplets of oil may not be forming underneath the seal. Over time, droplets will begin to form at the base of the transfer case output shaft housing, and possibly trickle down the drive shaft. At this point, there will be clearly visible fluid marking the storage location of the vehicle, and there may be a slightly foul or oily smell around the vehicle after operation. Finally, if a severe leak has occured while driving, the likely symptom will be a check engine light, in some models, but others will only present a clattering noise from the transfer case, or the transfer case may fail.

Since the transfer case is a power distribution unit to all four wheels, failure of the transfer case will render the vehicle useless, so an obviously leaking transfer case output shaft seal should be repaired immediately to protect the expensive unit. However, if only seepage is noticed, or in other words, the area near the seal seems a little glossy, the repair is not extremely urgent. In this case, the transfer case fluid level should be checked, and if the transfer case is full, the manufacturer may even consider slight seepage normal.

According to a comparison of real-world data, transfer case output shaft seals typically fail any time after 85,000 miles, with the majority of them failing long afterwards. Some failures are reported before the 85,000 mile mark, but that is typically not the case. Risk factors that could cause the output shaft seal to fail prematurely are lifted suspensions that alter the driveline angle, a worn drive shaft yoke, worn transfer case output shaft bearing, or lack of maintenance.

Diagnosing a leaking transfer case output shaft seal is very simple and straightforward. If the seal is allowing a droplet to form, it must be changed. Also, if the transfer case output shaft bearing is being replaced, or if the driveshaft is removed for any reason, the seal should typically be replaced. Lastly, if there is play in the driveshaft, the seal will be changed to prevent future leaks due to uneven wear of the rubberized lips on the seal.

When inspecting the Transfer Case for leaks, it is recommended to fully clean the case, and use dye to trace the source of the leak. The case halves themselves can leak, which would require disassembly to repair.

Before access to the transfer case output shaft seal is possible, the driveshaft must be removed from the transfer case, and some fluid may have to be drained from the transfer case to prevent spillage. Once the driveshaft is out of the way, a seal puller is used to pull or bend the seal out of the transfer case output shaft housing. The output shaft is cleaned, as is the housing where the new seal will be installed, and depending on the recommendations of the manufacturer, a sealant will be applied between the new output shaft seal and the transfer case housing. When the drive shaft is re-installed, if it directly contacts the seal, the seal will be lubricated and protected while inserting the driveshaft yoke onto the output shaft of the transfer case. The driveshaft and transfer case bushings will be inspected for excessive play before the transfer case is filled and tested.

When replacing a Transfer Case Seal, it is recommended to change the Transfer Case fluid. Often the fluid will be low or dirty as a result of the leak.