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2005 GMC Yukon XL- Service 4 WD light comes on and the indicator light is not lit up nor can I change from 2WD to 4WD. It is push button selection with the option of Auto.

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  • 36 Answers

It is probably the encoder motor attached to the transfere case. look under the vehicle to see if there is signs of corrosion between the encoder motor and transfere case.

Posted on Nov 11, 2010

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I have a 2003 GMC Yukon XL, what is the correct way to drive the 4 by 4 push botton system?


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Aug 14, 2012 | Cars & Trucks

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I have a 2005 gmc Yukon XL and it has been a great vehicle. However, occasionally, out of nowhere that stability system disabled and traction control warnings light up. Concurrently, the lights on the...


First thing I would check is the wheel sensors. If yours are in the hub then lift the wheel and check for any play from top to bottom of the wheel. this will indicate a bearing going out. this can play havoc on the trac system. Also check the wiring of the sensors, unplug it and inspect the leads for corrosion. Check the wires for wearing against another part. Check the plug ends carefully the wires tend to start breaking right where they go in to the plug.
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Apr 17, 2011 | 2005 GMC Yukon Xl Denali

3 Answers

I have a 2005 GMC Yukon XL. The service 4WD is on.


Yes you do have to take it to the dealer, This is a common problem in these trucks. This is caused by a bad encoder sensor in the shifter on the side of the transfer case. The sensor can be replaced with out having to replace the shifter assembly.

THe best test is to get the code from the system. This sensor is a sliding resistor and the material wears off causing a false reading. That is why the lights were showing Nothing, but you were able to drive. The code for the sensor is C0327.

TBS: #PIP3480M: Rattle Drone Or Buffeting Noise At Highway Speed In 2WD Or DTC C0327 - keywords 246 2hi 2high 4WD auto awd buffet buzz case click indicator knock lamp light service tick transfercase transfer vibrati - (Mar 4, 2008) Vehicles involved were built approximately between 01/01/04 and 03/06/06. The noise condition if not noticed by the customer may cause eventual encoder sensor wear causing DTC C0327 set in the Transfer Case Control Module (TCCM).

An updated TCCM calibration has been released to apply light pressure to the transfer case clutch pack and reduce the rattle. The calibration was released on 3/18/07 and the title line will read "to correct transfer case rattle at highway speeds and possible DTC C0327". For Rattle only (no current DTC C0327 set), Install the updated calibration and if necessary follow the diagnostics listed below

If the vehicle has a current or history dtc C0327 and can be diagnosed to the encoder sensor, re-flash with the updated calibrations and replace the encoder sensor as necessary.
Important Note: All NV246 transfer cases built 02/25/06 and beyond are manufactured with pressed fit parts to help reduce the rattle. Inspect the ID tag on the transfer case for this build date and verify the tccm has the latest calibration before repairs are initiated.

Thank you fur using Fixya and good luck.

Apr 20, 2010 | 2005 GMC Yukon Xl Denali

1 Answer

GMC Yukon XL is stuck in auto 4wd. Service 4wd light is on message center.


First get the codes from the transfer case control module.This will help in diagnosing the problem.You can try pushing the 2hi and 4lo buttons simultaneously for 10 seconds.This should put the transfer case in neutral. Then try going to 2 hi.See if this will get it out of 4wd.Let me know what you find.If you need more help let me know Good luck.

Mar 02, 2010 | 2001 GMC Yukon XL

2 Answers

My 2001 GMC Yukon seems to be stuck in 4 wheel drive. The drive train is binding up when turning on dry pavement. The push button light is on 2hi and the service 4wd light is on. Is there a way to get it...


It may be the front axel actuator moter(on front axel right side) is not disengaging the axel. There is a 4wd
fuse 15amp in the fuse block under the dash, make sure it's not blown. If the fuse is ok, check the connections at the actuator and the transfer case switch. These are the more common causes for the
problem you have. Give these tests a try and let me
know if you want to go to the next level.
Hope this helps. Good luck.

Feb 12, 2010 | 2001 GMC Yukon XL

1 Answer

Service 4wd light


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Mar 13, 2009 | 2004 GMC Yukon

1 Answer

2000 yukon xl. 4x4 wont engage


My 2000 Yukon XL with 5300 engine had same problem at 115,800 miles in Aug 2006(I bought the vehicle new January 2000)...My GMC dealer did diagnostic and replaced a faulty 4WD Transfer Case Shift Control. (reading from the service invoice) It was GM part number 15709327. Cost for the repair was $41.48 + labor $74.13, total was $115.71...it now has 165,000 on it and so far no problem and the 4WD works when I need it.

Dec 23, 2008 | 2000 GMC Yukon XL

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