Has anyone have a problem with the transfer case rear output seal? I have had the seal replaced twice. The seal is still leaking! Is this a common problem with the tahoes? Going to another dealer for a second opinion.

 

I think a different dealer is a good Idea. If a seal is put in wrong it will leak, if a seal is put in to a case that has a casting defect it will leak.

 

Good call Jet. Also have them check the vent tube and the little check valve on the end of any tube. Sometimes there is a check valve like metal cap for venting.

If axles and transfercases don't vent properly, they will push oil out of the seals as they warm up and the oil and vapors inside expand. I've seen mud daubber wasp like plugging and over applied undercoating plug them.