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I've lifted my 1986 Bronco and put some 35" tires on it, the speedometer is now very off and was wondering how to fix that? I know that there is a gear in the transfer case that reads the speed but can that just be switched out or does it take more work than that?
It's easy to recalculate and change your speedometer gear. Especially if you have GPS on your phone (lots of free apps for that).
Go for a drive. The faster the better, so try to find a stretch of interstate/freeway.
Record what the speedometer says and what the GPS says.
Then, pull your speedometer gear out of the transfer case. It's held in by a single little bolt and goes into the tailhousing. Give it a tug once the bolt is out.
Count the number of teeth on your current gear, and then do the math:
New gear = current gear teeth * (Speedometer / GPS Speed)
So if you currently have an 18 tooth, and your speedometer says 65 when you're actually going 75.
New Gear = 18 * (65 / 75)
New Gear = 15.6
A 16 tooth gear will get your speedometer pretty close.