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Need some advice here. I have an 87/4.2/BA 10-5 with an NP207 transfer case. The transfer case leaks, which has resulted in 4-low going bad (bad grinding noise when we try to shift into 4-low).

Autozone has a bearing/seal kit for $88, but my Haynes manual says that taking apart the transfer case should be left to professionals (my mechanical skill is about a 4 on a scale of 1-10).

I can get a used NP207 on ebay for $260.

If I have to replace the transfer case, would it be possible to upgrade to an NP231 and would that be a good idea? If I should upgrade, will any 231 out of a jeep work, or are there certain things I need to look for? There are several on ebay that say it's from a 2.5L/5 speed. Are these compatible?

So, should I repair the one I got, replace it with a used NP207 or get a NP231?

Thanks!!
 

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I am a great remove and replace guy not a trans/rear gear mechanic atallbut I had no problems inside my NP231 and is there any guarantee the next T-Case you get from Ebay is any better. I would find a good repair manual on line for the T-Case buy the overhaul kit and then watch some Utube videoson the subject. You might also have a friend who is handy or maybe someone in your local area pages here on the forum.
 
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