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I'm working on a 2013 JKU that's a salvage title. One day during the process I dolly towed it for a 20 minute period, then a week later another 20 minutes. I later read that this was incorrect. Citations from the owners manual state that doing so will cause damage to the transfer case.

The jeep is currently fully repaired minus the airbag and seatbelt system. It currently drives great and there seems to be no issues even in 4-wheel drive.

-What kind of problems could occur out of this event?

-Would the damage have been instant or long term?
 

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I would also like to mention that the transmission was in neutral and the transfer case was left in 2wd
If I understood it correctly it has something to do with internals spinning but not lubricating properly when towed like that.
 

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That short distance won't hurt it. The transfer case has a pump in it to lubricate it. It is driven off of the output shaft of the transmission.

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