hello! You may want to investigate having a genuine GM transfer case installed. According to my estimating software, there were 6 possible transfer case variations of the model 246 transfer case all with different GM part numbers, used in that model year. Actual replacement part number identification is determined through the vehicle's RPO codes. Prices from GM range from $1295 to $1840 for a brand new one (for the part only). Replacement labor time is only 2.1 hours, which should be less than $200 at any dealer or independent repair shop. Therefore a brand new T-case, installed, should cost the same or less than the quote you are getting for a rebuilt one. I do not have GM's warranty specifics available in front of me, but typically GM powertrain components come with a long term parts and labor warranty (on transmissions it is usually 3 yr/50,000 miles; I am not sure on the transfer cases what the coverage is). If you are uncomfortable with the diagnosis of the mechanic you took it to, you can always get a second opinion from a transmission specialty shop. however, a transmission shop is likely to give you a similar diagnosis: the full extent of damage or wear cannot be accurately determines without removing and disassembling the unit for inspection. So, by all means, get a second opinion to make sure the transfer case is indeed faulty; however you may want to check on the cost of a GM transfer case in your area before agreeing to pay more for repair or replacement with one of potentially lesser quality.
So will a Chevrolet dealer service department be equiped to diagnose the problem?
Okay, I will call and set appointment with them. Shouldn't they be able to give me a cost right now to install a new GM transfer case?
ANY independent shop can obtain and install a GM transfer case if you want; they are not only available at GM dealer service departments. I was just suggesting you investigate a GM part because according to my estimating software prices it may be significantly less expensive than the other one youa re being quoted, and the quality is likely much higher. Yes, a Gm dealer service department will need your VIN number, and can usually give you a ballpark estimate over the phone before taking your vehicle in. They will however want to confirm the diagnosis of the other shop before committing to a price for repair.