Hello All.
My dad's X3 (2005) needs a new transfer case. The drive shaft u-joint broke and the front drive shaft flung around and cracked the housing. The oil I drained from the case looked like someone threw a handful of glitter into it so I'm thinking the clutch part must be pretty bad. I'm scratching my head which way to go for a replacement:
  • $2k+ for a rebuilt one from one of the aftermarket shops
  • $1k for a rebuilt one from ebay
  • $1k for a low miles (~100k) autopart recycler t-case
  • <$100 for a pull & pay junkyard t-case of unknown age


I pulled the old one off the vehicle and took it apart. There really isn't much to it. It seems to have parts that definitely wear, especially the clutch mechanism that I can't really see, also the chain. Those bearings seem bomber but they can't cost that much to replace. It seems like it would be very sensible and straight forward to rebuild one of these transfer cases... leading me to think rebuilt over a junkyard part.

I own and have owned several BMW cars (e28/34/38/39), but this is my first experience w/ an X3. Do you guys/gals have any experience good or bad w/ t-case replacements?