2005 Tahoe Z71. This solved my occasional problems with my 4WD. The first symptom appeared while driving on the road with 4WD when it shifted into neutral. I stopped and shifted all gears with no change. I was pretty sure that unless it fell out of the car the gearbox wouldn't behave that way when it's working. This helped me narrow the circle down to the transfer case. I noticed the light next to the 2 wheel button was off so I pushed the auto button and felt the transfer case engage. Drive on and off we went. From time to time I tried switching it back to 2 wheels and it always returned to neutral after about a mile. I left it in auto mode for a few months and then noticed it randomly engages 4WD on tarmac, phew! Not wanting to mess up my front wheel drive, I found that I could set it up for two wheel drive and then crawl under the car and completely remove the switch box that houses this unit (it's not necessary, btw). Remove the gear to remove it, but you have to twist a little to pull it out, it's very tight). You lose the ability to change the transfer case setting unless you manually adjust it with the wrench on the bottom, but now it no longer moves unintentionally. Those transfer cases are basically the same as they were 20 years ago, but they just replaced a lever on the floor with a motor and some electronics to do the manual work, and coincidentally those electronics are the culprit for most of the problems on these cars . .Once you've removed the shift block (I don't know what it's called) from the transfer case it's fairly easy to replace the sensor. This sensor tells the computer what gear it is in, and then the computer turns the motor as needed to select the correct gear. When this sensor starts to burn out, it sends false signals to the computer, which then starts cranking the engine to find the correct position, causing the transfer case to behave erratically. Your symptoms can be different. According to online forums, this sensor is the problem 60% of the time, and the dash switch is responsible for another 35% of transfer case problems. Your mechanic doesn't want you to know. I disassembled the shifter on my dining room table, replaced the sensor, and put it all back together while watching the game. I don't recall anything complicated or lengthy in this process. I reinstalled it about a year ago and haven't had any problems since.
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