I put my 2000 jeep cherokee in 4 wheel drive and proceeded to go through some deep snow when I heard a pop and now it just makes a grinding sound when i put it in 4 wheel.
First, get it onto some dry ground and look underneath. See if you can get an eyeball on whats making noise. Without lying underneath, have someone try to engage 4x4 while you watch from the side.Or get it up on a lift. When you have an idea what or where noise is coming from, I can help you with the how to fix it part.
Oil beneath transfer case is a really bad sign. Likely, there was an internal failure which managed to punch a hole in, or crack the case. This is the result of internal wear and tear and cannot be avoided. If unit was well maintained, there is nothing you could have done to avoid it.
Transfer cases can be obtained from many sources either new, remanufactured or used. They are not so large or heavy that the average person with some basic mechanical skills and a basic set of tools and manual, cannot replace. Try and find one with the lowest miles, on unaltered vehicles (no off road or lift kits) in a salvage yard. That's the safest most economical buying option.
Good luck, sorry to hear that.
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I finaly got my jeep to move and it did finnaly shift into 4 wheel but there was alot of oil beneath the transfer case
My 91 cherokee makes a poping sound when i put it in 4 weel drive
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