It appears my new <6 month old KARKING rebuilt Transfer case has been leaking oil.

As best as I can tell, it is coming from the passenger axle. Its falling directly onto the down pipe.

I notice that the shop who replaced the transfer case bled it and filled it so it's in the min/max lines while running. And when it's stopped, its completely full. Could it just be overflow that is seeping out and falling on to the exhaust?

Any help would be greatly appreciated. I searched quit a bit, and none of the threads I found directly addressed this type of issue.

Thanks guys

Edit: is it possible it's gear oil coming from the transfer case? If it's coming from the passenger axle seal, would that be gear oil?

 

if it would be coming from the axle seals it would be gear lube. It might be leaking acd fluid from the acd banjo fitting on the transfer case.

 

I've heard of this before so not impossible.

 

I've heard of it too. Check the banjo bolt on top of the t case. If not there's a seal the divides the differential from the tcase I'm pretty sure.