Should I Replace Transfer Case for $3400?
 

Hey All, last week my E53 got the 4x4, Brake, and ABS light displayed on the instrument cluster. Then it went away after constantly turning the car on and off to see if I could hear any noise beneath the car (which I sort of did). Anyways, the lights went off and car drove normal again but I decided to take my car to my Indy so they can run a diagnoses. My indy stated that they found codes stored in the computer stating that the transfer case motor is bad and the condition of the oil is also bad. He recommends that we replace the transfer case for a whole new remanufactured unit and the total cost for parts and labor will be $3400. What do you think I should do? I was thinking that I can just replace the gear with a new carbon one that many people have done and also replace the transfer case oil as well. However, he said that if the computer is stating the oil is bad then there is the possibility of metal shavings and other contaminants in the oil, and that simply fixing the gear for the motor alone won't last long.

So should I go ahead and let them replace the whole transfer case or do you think I can save thousands of dollars and just replace the gear and oil? Also I would need INPA to reset the adaptations for the transfer case oil right?

Also my X5 is a 2004 4.4i. Thanks in advance!

I would try changing the oil first and go from there. Mine used to make a loud whining noise for quite sometime but no dash lights or codes. I replaced the oil and used INPA to reset the transfer case. The noise gradually subsided and completely went away in about a month. This was about 3 years ago.

The lights and whirling noise is the worn gear on the actuator motor. It’s literally a free fix if you flip it correctly. $13 if you buy a new gear.

And there is a thread on this as well as a member-produced YouTube video showing how to do the fix (which is easy).

1+,

Flip the plastic gear 180 degrees. In fact, no need to separate the electric motor from the housing.

Once done, change the oil, you can buy the Ravenol brand at FCPEuro for $20 (instead of $45 for BMW brand oil).

That indy should be ashamed. Gear + gear oil change and you are back on the road for less than $300 parts + shop time. And that's generous to the shop but at least fair to the customer. They could warn you that it may not work but that they would recommend trying that before a new transfer case. $300 vs $3400... that's a no-brainer roll of the dice.

Thank you all for the replies and advice! I figured it would be best to try and replace the gear and replace the oil! I will pick up the car and take it home tomorrow. Any recommendations on which brand gear to buy?

I saw this one from Amazon:
https://www.amazon.com/MTC-122053-Tr...ustomerReviews

and I saw this whole rebuild kit from ECS Tuning:
https://www.ecstuning.com/b-genuine-...QaAhNnEALw_wcB

Should I go for the Genuine BMW part or go with the Amazon part hoping it'll last and has no manufacturing defects shown in the photos in the review section.

Also can you clarify what you mean by flipping the plastic gear 180 degrees?

If your not super handy with a wrench I would replace the motor itself for $135 off amazon if it was me. That plate isn't the easiest thing to get off to get at the gear. I will be doing the motor when I get over the flu on my wifes x5.

Also I would find another indy :)

?? - I can't find Ravenol TF-0870 on FCPEuro's site. Amazon has Ravenol for $36. I recently used Rock Oil's TF-0870 from Amazon (sold by Atlantic British) for $27, but I'd love to buy Ravenol for $20. Was it perhaps on a different site for that price?

AM.