I have a 1992 300TE 4matic with all the symptoms of a leaking transfer case. Right now, the car drives alright with the 4matic system disabled, but, since I drive in a lot of snow, I need it fixed. I've been told that it's not economically feasible to replace the transfer case-it's better to get another car that has already had it replaced.
My car has 209,000 miles on it, but almost everything else is in great condition, so I would like to keep it if possible. The only problem is a lot of rust on the bottom.
What are my options for the transfer case?
How much does a rebuilt one cost?
Is it possible for someone with a fair amount of mechanical skill (although not too much with Mercedes) to replace it?
Is it possible to rebuild it yourself (can the leaking seals be replaced)?

Thanks in advance!

 

The dealerhips overhere charge upto €5000.- for a W124 4-Matic transfer case REPLACEMENT, rendering the car "economically total-loss" today. I don't know if anyone rebuilds them. The W124 4-Matic system is completely controlled by vacuum, a specialty on it's own...

-edit- I guess the only option you have if you reeeaaally wanna keep your car is finding a suitable donor car and technician.

 

Actually, the system is Electric, Hydraulic, and Mechanical. There is no vacuum component to it.

 

Even though I owned a W210 4-matic for a long time I know very little about the W124 4-matics. That being said, you need to first find out where the leak is coming from. Some leaks can be fixed without a complete tear down in transmissions, transfer cases, rear differentials. In some cases you do not even have to remove the leaking component.

After 30 years your output shaft seals are probably plastic instead of rubber. So those should require shaft removal but not necessarily the transfer case. Again though I do not know the W124 4-matic. I have read that the transfer case work for the W124 is particularly difficult unfortunately.

As an example my manual tran W201 has been leaking fluid for 4 years now from the input shaft seal. I have been just topping it off for that long once a year. And just 2 weeks ago the output shaft seal completely breached and is just letting the fluid go straight thru. In the process of dropping the tranny and replacing both seals. The dealership still sells a seal kit that I purchased for $85.
Difference here is that a manual transmission removal is only a 2 hour job. A transfer case removal may be infinitely more difficult.

So for you the first step is to find out where the leak is coming from and see if it is replaceable without a complete teardown.

Second step is to find out if the dealership even sells a kit for the seals. If not, I would say it is time to find another 4 wheel drive car particularly since your is rusty.

- Cheers!