Hey everyone, just closing the loop here. So I took it to the dealer as stated above, they quoted me $2,600.00 for a new Transfer Case, Transfer Case Motor, and Transfer Case Control Module. When I asked what had happened, they told me that the TC was binding up causing the motor/module to fail. This didn't sound right, but lets play along.
When I asked them if they would contact FCM about the Powertrain Warranty because that seemed a bit excessive as it was only 2 months beyond the 5 year mark and well below the 100k mark, they told me that there was no way FCM would cover it and even tried to state that the warranty wouldn't have covered it which was a lie.
When I told them it was still too expensive and I would need a second opinion, they came back with a proposal and this is where it got really fishy. They told me if I was willing to replace 2 Engine Mounts and do a differential fluid flush on both front and rear they would waive the cost to replace the other parts. Cost: $1,600. When something seems too good to be true, it usually is. How could a dealer offer me $2,600 in parts/service if I was willing to pay the regular price of $1,600 for engine mounts/fluid flush? They would have been better off telling me they'd cut the $2,600 down to $1,600 and call it a day.
Instead, now knowing my WK2 was fully out of warranty, I decided a second opinion and some research was necessary. The truck was still driveable although I would be careful with it. The dealer told me it was a one-time offer and that I'd be back and they couldn't guarantee the same offer would be available.
I hit up the forums here as well as spoke to a coworker who just happens to also have a WK2 (still under warranty). He has a shop at his house, so I guess I've found my new place to work on the Jeep if needed.
Pricing out the parts vs what the dealer quoted me, I decided to take a phased approach. I would start by replacing the Transfer Case Motor with a brand new one first, and then go down the line. Even if I ended up replacing the TC itself, I figured I would still save money.
I replaced the TC Motor, which unfortunately did not fix the light. I was still getting a clicking sound every time I shifted in or out of gear as well as turned the wheel at a stop. It would occasionally bind up when slowly turning near full lock (turning in/out of parking spaces) and then would break free. The light would be off initially upon start up and for the first few minutes of driving, but would turn on again at highway speeds.
I'll admit I wasn't the quickest to order the next part (TC Module), but I did begin sourcing one. While doing this, the behavior of the Service 4WD light changed. Instead of ticking and binding up, the light was on upon start up and remained on all the time with no ticking or binding up.
New TC Modules require flashing by guess who? The dealer of course. Researching this I discovered that it's not VIN specific flash, I would just need to source a used one that matches the year/options. Off to Ebay. Found one for $200 that came from a parts vehicle, 2014 Overland. I decided to give it a try.
Replaced the TC Module (under the drivers seat) by removing the fuse first and then plug and play with the module, and all is back to normal. No Service 4WD light and it drives perfectly normal.
Total Cost - $609.00
Total Time - 45 Minutes
Difficulty - 3.5 - Overall it was pretty simple, but anyone not comfortable crawling under a vehicle might be a little uneasy. If you've ever replaced anything under the vehicle, this couldn't have been more simple and straight forward. The Module was plug and play, like adding a new fan to your computer tower.
One thing I did notice was that both parts seemed to be newer versions. I can grab part numbers if anyone would like them.