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Transfer case

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Our 2004 Lexus GX470 transfer case has failed. We bought this vehicle from our mechanic 2.5 months ago. He had exchanged the fluid in the case last Fall, before we bought the vehicle. It showed no signs of malfunctioning during our test drive. The BG case is under warranty. Mechanic is suggesting one of three options:

A) Open up the case, diagnose and repair. Cost unknown at this point.

B) Replace with a rebuilt case that has 50k miles for $3100 out the door ($750 labor) which comes with a 90 day warranty.

C) Replace with new Lexus case for $3900 out the door (same labor cost), Lifetime warranty.

There is a $2000 reimbursement from BG warranty on the repair.

Do these quotes sound right and which of the (3) options would be best? The vehicle only has 108,000 miles.




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