Transmission Fluid in Transfer Case - 2007 Jeep Liberty 3.7 L

[Friar]

My 2007 Jeep Liberty has had small leaks from both the transmission and the transfer case, but those small leaks do not occur any more. I check the transfer case level every few months; in October 2024 the level was perfect. I cannot check the transmission fluid level but the shifting is always smooth. Today (May 8, 2025) I removed the plug to check the transfer case fluid, and a stream of red transmission fluid came pouring out, indicating the level was above the top of the hole. Immediately I replaced the plug and lost maybe a cup of red fluid. So I believe a seal between the transmission and the transfer case has failed. However the transmission continues to shift perfectly. Should I just keep driving it? The vehicle has 355,400 km and does not leak or burn engine oil.

 

[ikuo78]

In that case, you'd be better off worrying about the amount of ATF in the transmission.
Since that amount will be transferred to the TC within six months, it's probably best to plan to replace the seal within a year.