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You can actually pull the 4x4 fuse to check if the transfer case is broken. If it runs completely smooth without the fuse, you know what to blame.
Had transfer case changed on a F01 and my 6 series GC. Both at low mileage. It is one day of labor and the cost of the part. The germans call it VTG. (Verteilergetriebe). I had i covered under warranty. The total cost is about 8000$ without warranty...
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