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In many Chevy Silverado trucks, the transfer case can encounter some common issues. One frequent problem is the input seal failing, causing transmission fluid to leak into the transfer case. To fix this, the transfer case must be taken out and the seal replaced. Another issue is the fluid pump vibrating within the case, potentially creating a hole in the back side that requires replacing the entire case. Additionally, leaking tail shaft seals or failed bushings behind them are not uncommon. These can be easily addressed by disconnecting the driveshaft and removing it. Occasionally, the encoder motor may fail, often due to an internal sensor malfunction.
The issue with the Chevy Silverado transfer case involves it engaging 4-wheel drive unexpectedly or having holes in the case.