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Transfer Case Leaking - Advice


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I noticed a leak under my 2018 Sierra 1500 this weekend near the transmission. Took to a local shop today and they are telling me I need to replace my transfer case (2,000). I previously had a leak in March of 2022. That time I took to dealership as I was still under warranty. Service ticket from dealership stated "transmission fluid leaking between transmission and transfer case. Upon inspection found propeller shaft transmission flange seal leaking. Replaced seal and transmission adapter housing gasket." I called them after I got the quote from the other shop this morning to see if the work from 2022 was warrantied and they said they only warranty parts/service for 12 months. I'm also now out of the 5yr/60K powertrain warranty. When I called the dealership they quoted me over the phone 2800 to replace transfer case, however they said it's highly unlikely they would need to replace it and that in most cases they just overhaul them. They said that would be 1200-1300. Is there any pro's/con's to overhaul vs replace? Also I find it weird it's already leaking again. Have not been real happy with the transmission issues. I had the shudder issue where they had to change out the fluid early on. Luckily that has not come back, but I'm wondering if this issue is related somehow. 

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If tge transfer case works fine, shifts fine & no unusual noise, you probably just need another seal/gasket replacement. If it's not leaking very much, just clean it off, check fluid level & drive it. If it is the seal, try adding some AT-205 per instructions & see if it helps. Do the cheap inexpensive things first is my rule to go by. If that fails, then do the next step.

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