VW Lupo Transfer Case Leak Causing Gear Slippage Issues

Had a similar gear grinding issue on my 2004 VW Polo TDI. The oil leakage around the transfer case turned out to be a serious problem requiring immediate attention. The mechanical wear caused the gears to slip, especially during shifts. The repair involved a complete transfer case overhaul. Main issues found were worn synchronizer rings and damaged gear teeth due to insufficient gear oil levels. The seals had deteriorated, leading to significant oil leakage. When left unchecked, this type of problem can cause catastrophic transmission failure. The job required: Removing transfer case, Replacing worn gears and bearings, Installing new seals, Flushing old gear oil, Realigning everything properly The repair took 3 days at the shop. This kind of gear wear is not something that can be temporarily fixed or patched. The symptoms you describe match exactly what happened before my transfer case needed rebuilding. Considering the age and mileage of your Lupo, its worth getting it diagnosed properly to prevent more expensive damage.

Sounds exactly like what I experienced with my Lupo last year. The gear grinding noise started small but got worse over time. The transfer case oil leak turned out to be the main culprit causing excessive gear wear in my transmission. My mechanic found multiple worn seals that needed replacement, plus some damaged gear teeth. Getting everything fixed properly was essential since these gear oil leaks tend to create bigger problems if ignored. Would you mind sharing what the repair ended up costing you? Mine was pretty expensive but wondering how it compares. Also curious if you had any other issues pop up afterwards? Sometimes fixing one thing reveals other worn parts that need attention.

Happy to report my transmission is working perfectly since the repair. The grinding noise completely disappeared after fixing the defective gears in the transfer case. Total cost came to 330€ for the complete job, including new seals and transfer fluid replacement. The repair addressed all the mechanical wear issues. No other problems surfaced afterwards, shifts are smooth and the oil leakage stopped completely. The overhaul included a thorough inspection of connecting components, so everything was checked and verified to be in good condition. Looking back, catching the transfer case problem early saved a lot of potential damage. Regular oil changes and monitoring for leaks are crucial for preventing similar issues. The repair shop did a thorough job fixing the gear wear, and the price was fair considering the amount of work involved.

Thanks for sharing those details about your repair costs. After hearing about your experience, I finally got my Lupo fixed last week. The grinding noise was driving me crazy, and seeing that oil leak under the transfer case made me nervous about more expensive damage. Found a good mechanic through a local VW forum. They did a complete transfer case overhaul, replaced all the worn seals, and did a full gear oil change. My final bill came to 410€, bit more than yours but included some extra worn parts they discovered during inspection. The difference in how it drives now is amazing, no more gear grinding or rough shifting. The transmission feels like new again. Really glad I got it sorted before the gear wear got worse. The mechanic showed me all the damaged parts they replaced, which helped explain why the repair was necessary. Must say getting a second opinion was worth it after my bad experience with the previous shop. This new mechanic took time explaining everything and did quality work. No more oil leaks or transmission problems since the repair.