My local dealer charged nearly $700 for a "bad encoder motor" replacement procedure. Please read the MANY blogs easily found online by 4WD owners like you (including many great posts by GM techs) and they will tell you to open up the encoder motor and replace this electronic sensor, who is almost always the culprit. This $50-$70 part is all you need and you can find a YouTube video on how to install it. Most will advise you to lower the front drive shaft, but if you are patient you can lower it down and back without removing the shaft. I made this in my no elevator garage and raised it 3 inches to give it a little more room to work. This encoder ring looked a little different than the one I took off, but it fit and worked perfectly. Every photo I could find from different manufacturers looks like this new one, so it reassured me that the extra rim hasn't changed anything (and fits perfectly). In this picture you can see the raised bezel on the outside of the encoder ring and my original bezel was flush. The appearance of the after-sales porter is the same as this AC Delco.
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