Chev Oil Leak

Highmarker03

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Had the same problem on mine. Took it to a good transmission shop. Pulled t-case, welded hole, and instaled the spacer plate to correct the rub. All for about $400 US. Has been about 25,000 miles since and not a single problem. I caught the leak well before I ran the case dry though. Found oil all over the tailgate and rear bumper. Then looked underneath and the rear axle was covered. Found a hole the size of a pencil tip in the t-case. Truck had about 80,000 miles on it when it happened. You definatly don't need a whole new t-case! Think the shop is trying to give you the shaft. As long as you didn't run it completely dry.
 

Summitric

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We have one here at our shop that is almost cut in two...... The plate/ring has spun around inside for so long, that it wore through all the way around except for about 2" of case, as well as other holes from pieces of other things coming apart and breaking up the case..... This one was way beyond repair;) ....... Out of a chevy avalanche
 
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