Transfer case / Transmission?

Tiny
BEETLEPUNK21
  • MEMBER
  • 2014 BMW 320I
  • 2.0L
  • 4 CYL
  • TURBO
  • 4WD
  • AUTOMATIC
  • 109,000 MILES
Greetings! I just bought this BMW, and it runs and drives great, but I could hear a noise coming from the transmission. I removed the muffler and the heat shield to access the rear driveshaft. This is what I found (see attached photos). It still runs and drives great. But I’m not sure what this part is. Is it the transfer case? Would this be an easy part to replace?
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Wednesday, June 4th, 2025 AT 12:05 PM

8 Replies

Tiny
BEETLEPUNK21
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  • 124 POSTS
Is there supposed to be fluid where that hole is? It doesn’t really show any signs of fluid leaking out anywhere.
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Wednesday, June 4th, 2025 AT 1:33 PM
Tiny
KEN L
  • MASTER CERTIFIED MECHANIC
  • 54,137 POSTS
Hmmm, you found the problem. The case is blown up! The car will need a new or used transmission. I would try eBay for the unit and then swap it out. Let me know if you need instructions on how to R&R the transmission.
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Thursday, June 5th, 2025 AT 1:49 PM
Tiny
BEETLEPUNK21
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Is it the transmission or the transfer case?

I thought it was the transfer case that was mounted to the rear of the transmission and to the rear driveshaft?

Do you have a diagram that shows the transmission, the trans case, and the driveshaft?

I just want to make sure before I purchase the part. Thank you so much for your help. I greatly appreciate it.
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Friday, June 6th, 2025 AT 8:48 AM
Tiny
KEN L
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Yep, my bad, you need a new transfer case. Check out the images (below). Please let us know what happens.
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Friday, June 6th, 2025 AT 1:50 PM
Tiny
BEETLEPUNK21
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Many thanks. Do you happen to have the removal/installation instructions? I greatly appreciate it.
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Friday, June 6th, 2025 AT 3:26 PM
Tiny
KEN L
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Sure, here are the removal and installation instructions for the transfer case. Check out the images (below). Please let us know what happens.
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Saturday, June 7th, 2025 AT 9:21 AM
Tiny
BEETLEPUNK21
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Hey Ken, transfer case is installed, and the car runs good. However, I did not know that you had to register or code the transfer case to the car. I do have a scan tool that will do that, but I will need to access the information on the transfer case. You don’t happen to have that procedure, do you?
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Monday, June 16th, 2025 AT 5:39 PM
Tiny
KEN L
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Good job on the repair. The instructions look pretty vague, I would try a hard system reboot to see if the allows the systems to re-initialize.

Here is a guide to help you:

https://www.2carpros.com/articles/step-by-step-guide-performing-a-hard-system-reboot-for-your-vehicles-electronics-systems

Here are the instructions from the manual. Check out the images (below). Let us know how it goes.
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Tuesday, June 17th, 2025 AT 6:39 AM

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