I took my tahoe to a transmission shop where they did their normal tests...road, fluid, computer. They found nothing wrong with the transmission. The reason i took it in the first place was because every once in a while i will hear some type of gear/chain slippage..not sure really but this is the only way to describe it. I started talking to the mechanic and he decided to some what check out the transfer case while he had it up on the stand. He made me feel the transfer case as another guy in the shop shifted from reverse to drive (he did this a few times). As he did this there was somewhat of a thump in there which he said could indicate some type of looseness in the chain or som parts and recommended a rebuild, but could not quote me anything until he got it apart.

I guess my question is, has anyone ever ran across this type of issue, and what kind of prices should i expect to have this rebuilt. There is nothing wrong with the way it drives, shifts anything like that, but this sound happens every once in a while (once every few days or so).

 

My 96 chevy silverado does exactly the same thing. My trans was remand about18 months ago and my mechanic said my transfer case was wearing out. He recommended not doing it right away. He said if it gets worse than do the rebuild. It has not got any worse so I haven't had it rebuilt. It sounds like your guy is right on track.