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I've got a '91 Silver Anniversary Edition and my Transfer case started leaking transmission fluid. This was an all of a sudden thing. One day no leak and the next a pretty good size puddle under the truck. Anyway, I looked and it looks like the seal where it splits in half is leaking, not where it mounts to the Transmission. I called a mechanic and asked about getting it fixed and he told me a minimum of 500 bucks. Does this sound right? I mean I haven't had any problems with it except it started leaking. I figured replacing the seal wouldn't be that bad but he said that when you take it apart you have to rebuild it and if it needs new parts the price would only go up from the $500 starting point. If this sounds right then anyone know where I can get either a good used one or a rebuilt one for a better price? I'm in Austin Texas. I really don't want this to be the reason my wife makes me sell this truck. I've had blow by since I bought the truck 2 and a half years ago and keep meaning to put a new engine in it but now with this I'm really starting to wonder if it's worth it. My wife certainly doesn't think it's worth it. Hence the reason I haven't been able to find the money for the new engine. Every time I think I'm going to get to do the engine we need something else. At least that's what she says.
The transfer case is not difficult to pull or work on. I would thimk you could do it yourself. I think its strange that it just started leaking. 500 bucks sounds a little high as I think I could pull it, split it and reinstall it in about three hours if I was working fast. I wouldnt expect your standard machanic to rush, but certanlly he could do the job in twice that @ 60 bucks an hour, thats only $360.00. Of course if theres something wrong, all bets are off.
You should be able to do this job yourself if you have a few basic tools. That is just a cover. If everything is working, then I wouldn't even consider a rebuild. I'd install a new seal for the drive shaft, but that's it. Good luck.
Take a good look at the t-case and how it is bolted in.....do some research on removing a t-case from your year Bronco you can look it up in your Haynes, or search on this forum......then you can judge better if you want to at least tackle the job of removing it and reinstalling it. If you feel you can do this yourself, then ask your mechanic how much it would be if you just brought him the t-case out of the truck to let him work on it.
Now if you do your homework and feel that you can split the t-case and fix the leak......go for it.....its not all that complicated. I am not 100% sure on this but I dont think there is a "seal" or gasket for the t-case half's. I think all you put on the mating surfaces is some Yamabond (I use this because all my mechanical background is with motorcycles) or I am sure Permatex has a comparable gasket material. then put the two half's back together and then reinstall the t-case itself.
Also get at least a second opinion on the job.....and search!
look on ebay, there is a guy who always has rebuilt BW1356s for sale, hes in pennsylvania i think. there i think only $500, and free shipping. i plan on buying one from him, and possibly a M5R2, cause its a transmission shop, and they have stuff on ebay all the time
I tried tightening the bolts and it seems to have gotten a little bit better but not much. I talked with another mechanic and he told me 60 bucks an hour and should take about 6 hours. He said once he got my Bronco down there and started working it may be quicker depending on what all he has to do but said he could probable get it done for about 400 bucks. Sure seems like a lot of money though just to put in a new seal to stop the leaking.
If the leak is from between the two case halves, it's not even a seal. It's permatex - or Ford brand gasket maker as Streetgang said. Pulling the case and splitting it are pretty simple - if you were planning to install that new motor in the Bronco yourself - there is nothing any more complex in resealing a t-case. I got a photo copy out of the parts book from the local gear shop when I rebuild my BW1356 (when I bought the seals and bearings) - it showed the disassembled parts layout and where everything goes. If you have to go to a mechanic - removing and re-installing yourself would knock down the price a bit too. Oh yeah, you will probably need to replace the gasket between the tranny and t-case. This one needs to be the gasket though and not permatex. Good luck.