Had a awfull humming noise comming from the transfer case. Dealer said they checked the fluid and it was full and there were no metal chips inside. Told me I could just drive it like that and see what happens or have it replaced . So I decided to have it replaced. $3100 does that sound right? That include loaner car for the week.

 

humming noise filming????

 

It seems like madness to replace the case for $3k if it works properly and there are no metal shavings? The drivetrain can be noise, though usually mostly in cold. Mine sounds like this in the winter (but indeed only when it's less than 0 degrees celsius, and it gets worse the colder it is, feels normal to drive still):
How about you video the noise or something and let us have a look/hear?

 

mine was much louder than the video. he removed the drive shaft and no change while driving on the lift.

 

The problem was the rear bearing where it connects with the drive shaft.

 

Hmmm. . . I have been hearing a grinding or friction kind of noise coming from under the car seemingly right around the firewall in my X-type wagon. The gears shift smoothly and I get great mileage but that noise is getting progressively worse, especially when engine braking or coasting. This can't be good. Transfer case issue? Can any reputable shop fix or replace if it is the transfer case? I want to keep this car but the maintenance costs are ridiculous.

 

All the above is due to failing Transfer boxes. My is shot too (50K and 10 years old) I saw loads of metal fillings come out when the box was drained. I asked them to refill the unit with Royal Purple fully synthetic oil just so I was mobile. the noise level has stayed the same but the unit is ruined. Many other threads on many other forums cover this problem. The cause is ONLY 550ml of lubricant in the whole box! The oil over heats and breaks down. The box becomes excessively noisy. If you continue to drive like this it will fail and smash to small pieces. Only answer have it changed or changed out if you're American. The transfer box from Jaguar is £1,100 or approx $2,000 there are good second hand ones or old stock of new boxes on Ebay for half of this price. The job itself is a PIG! Jaguar say its engine and gearbox with transfer box out and this is the way they change the TB. However if you are willing to take your time and cut down a spanner or two the box does come out under the vehicle. I am a retired Motor Mechanic and can't change the unit myself through ill health. I intend to buy a very low mileage second hand unit of old stock unit if I am very lucky. Then get my local garage to change it. Plus very, very important, Get the oil changed EVERY SECOND SERVICE WITHOUT FAIL. There is no drain plug but by tilting the car at an absurd angle you will get 75% of the old oil out. Replace it with fully synthetic oil and this will help. Long term, the all wheel drive system is pants. It comes directly from the Land Rover Freelander whose transmission failed just as it does in the Jag as its the same system. I love my X-Type the looks and handling are first class. the engine is quiet and smooth if a little under-powered for a V6 multi valve engine with variable valve timing. If you love yours as much open your wallet and replace the unit but try to avoid the main Jaguar dealer their labour costs are out of this world!