Transfer Case Warranty | Merchant Automotive
Merchant Automotive
Transfer Case Limited Warranty
Two-Year Limited Warranty | Version September 22, 2026
Merchant Automotive builds transfer cases to provide our customers with a quality, dependable unit designed for the demands of their application.
We stand behind what we build.
Coverage at a Glance
Merchant Automotive transfer case units are warranted against defects in materials and workmanship for two years from the original purchase date.
If you experience a problem with your transfer case, contact Merchant Automotive. We will work with you to understand the problem, determine what happened, and work toward an appropriate resolution.
At the same time:
Warranty does not mean unconditional replacement.
Transfer case failures can occur for many reasons. Our warranty covers qualifying defects in materials and workmanship. It does not cover damage or failure caused by improper installation, contamination, another failed vehicle component, improper tuning, abuse, lack of maintenance, failure to follow installation requirements, or operating conditions outside the intended use of the transfer case.
USE IN DRAG RACING, SAND DRAG RACING, SLED PULLING OR OTHER MOTORSPORTS ARE NOT COVERED UNDER WARRANTY.
Warranty Requirements
Proper installation is critical to the performance and life of your transfer case.
The installation instructions provided with the transfer case are considered part of the warranty requirements.
Failure to follow a required installation, setup, or maintenance procedure may result in denial of warranty coverage when that failure caused or contributed to the transfer case problem.
Inspect the Driveline
Before installation, the installer must inspect the vehicle for conditions that could damage the transfer case or cause symptoms that could be mistaken for a transfer case problem.
This includes inspecting, as applicable:
- Universal joints.
- Front and rear driveshafts.
- Slip yoke and output shafts.
- Transfer case output speed sensor and related wiring harness/components.
- Encoder motor and shift selector switch.
- Front differential engagement assembly.
- Transmission output shaft and splines.
- Transfer case mount and crossmember.
- Related driveline components.
Known damaged or worn components that could affect transfer case operation should be repaired before the transfer case is placed into service.
Damage to the transfer case caused by another failed or defective vehicle component is not considered a defect in the transfer case.
Transfer Case Mounting & Hardware
Proper alignment and secure mounting to the transmission adapter housing are essential.
Inspect mounting studs, alignment dowels, and gaskets/seals between the transmission and transfer case.
Apply specified thread locker and torque mounting hardware to factory specifications.
Damage resulting from loose mounting hardware, improper alignment, or binding input splines is not covered under warranty.
Transfer Case Fluid
The transfer case is shipped dry.
The installer is responsible for properly filling the transfer case before operation and verifying the fluid level according to the supplied installation instructions and specified fluid type.
Final fluid level should be verified with the vehicle on level ground, filled to the bottom of the fill plug hole.
Damage resulting from operating the transfer case with insufficient, incorrect, or contaminated fluid is not covered under warranty.
Shift Linkage & Encoder Motor Calibration
Proper operation of shift linkages, electronic encoder motors, or manual shift controls must be verified prior to road testing.
Ensure the transfer case fully engages and disengages 2WD, 4WD High, and 4WD Low ranges cleanly without binding.
Failure to properly set up or calibrate shift controls can result in incomplete gear engagement or damage and may result in denial of warranty coverage when it caused or contributed to the failure.
Initial Road Test & Function Check
After installation and verifying fluid levels, the transfer case should be road-tested under controlled conditions.
The initial road test should include:
- Verifying quiet, smooth operation in 2WD mode.
- Testing 4WD High range engagement and operation at low speeds.
- Testing 4WD Low range engagement on appropriate surfaces.
- Checking for fluid leaks around case halves, output seals, and drain/fill plugs.
Operation should feel clean and positive.
If abnormal transfer case operation, noise, or vibration is observed during the initial road test, discontinue operation and contact Merchant Automotive before continuing to operate the vehicle.
Break-In & Maintenance
Customers are responsible for maintaining the transfer case and related vehicle systems appropriately throughout the warranty period.
Merchant Automotive highly recommends checking fluid levels regularly and replacing transfer case fluid annually or according to recommended service intervals.
Vehicle Modifications & Tuning
Merchant Automotive understands that many transfer cases are installed in modified trucks.
Vehicle modification by itself does not automatically void the transfer case warranty.
However, tuning, horsepower, torque, tire size, vehicle weight, towing conditions, competition use, or other modifications and operating conditions may be considered when determining the cause of a transfer case failure.
Damage caused by operating the transfer case beyond the capabilities of the specific build or by tuning or operating conditions that caused or contributed to the failure is not covered.
Customers who substantially change the vehicle's power level, intended use, or configuration should contact Merchant Automotive if they are uncertain whether the transfer case is appropriate for the new application.
If You Experience a Transfer Case Problem
Contact Merchant Automotive before removing, disassembling, repairing, replacing, or continuing to operate a transfer case experiencing a significant problem.
286 Hedcor St.
Holland, MI 49423
We may ask for information including:
- Original invoice or sales order.
- Vehicle year, make, and model.
- Current mileage and mileage when the transfer case was installed.
- Description of the concern.
- Diagnostic trouble codes (if applicable).
- Transfer case fluid level and condition.
- Tire size and differential gear ratio.
- Vehicle modifications.
- Towing or operating conditions when the problem occurred.
- Installation information.
- Photos, videos, or diagnostic information.
This information helps us understand the problem and determine the appropriate next step.
Warranty Inspection
A suspected transfer case failure does not automatically mean the transfer case needs to be replaced.
Whenever practical, Merchant Automotive will first work with the customer or installer to diagnose the concern.
Some concerns may involve shift linkages, encoder motors, wiring, sensors, driveshaft binding, fluid level, or another vehicle component that can be corrected without replacing the transfer case.
If the transfer case must be returned, an RMA (Return Material Authorization) must be obtained from Merchant Automotive before shipment.
Issuing an RMA does not mean the warranty claim has been approved.
Merchant Automotive will inspect the transfer case and determine, to the best of our ability:
Approved Warranty Claims
If Merchant Automotive determines that the transfer case experienced a qualifying failure covered by warranty, MA will, at its discretion:
- Repair the transfer case;
- Replace the transfer case or affected components; or
- Provide another appropriate warranty resolution.
Our goal is to return the customer to service with a properly operating transfer case while also understanding the cause of the original failure.
If an Immediate Replacement Is Needed
We understand that some customers cannot leave a truck down while a transfer case is returned and inspected.
When an immediate replacement is required before MA has completed the warranty determination, the customer may purchase a replacement transfer case when available.
The customer will be responsible for the replacement transfer case, applicable core charge, and shipping at the time of purchase.
Once the original transfer case is returned and inspected:
If the original transfer case experienced a qualifying warranty failure, Merchant Automotive will provide the applicable credit or refund for the replacement transfer case.
If the failure is not covered under warranty, MA will explain the findings and any applicable charges.
Purchasing a replacement transfer case before inspection does not constitute approval of the original warranty claim.
Labor, Shipping & Related Expenses
Transfer case warranty does not include labor or shipping.
Unless specifically approved by Merchant Automotive or included in the applicable written warranty, warranty coverage does not include:
- Diagnostic labor.
- Transfer case removal or installation labor.
- Shipping or expedited freight.
- Towing.
- Vehicle rental.
- Vehicle downtime.
- Lost wages, income, or business.
- Fluids.
- Shop supplies.
- Other incidental or consequential expenses.
Approval of the transfer case itself for warranty does not mean these additional expenses are covered.
What Is Not Covered
The Transfer Case Warranty does not cover damage or failure caused by conditions outside the warranty, including:
- Contamination from another component.
- Improper installation.
- Loose or missing mounting hardware.
- Improper fluid type or fluid level.
- Failure to properly adjust shift linkage or calibrate controls.
- Damage caused by another vehicle or driveline component (e.g., worn U-joints, binding driveshafts).
- Improper tuning or calibration.
- Operating beyond the capabilities of the specific transfer case build.
- Lack of required maintenance.
- Continued operation after a known transfer case problem develops.
- Unauthorized disassembly, modification, or repair.
- Accident or collision damage.
- Abuse, misuse, or negligence.
- Other conditions determined to have caused the failure that are unrelated to a defect in materials or workmanship.
A condition on this list does not automatically result in denial simply because it exists.
The important question is whether the condition caused or contributed to the failure.
Merchant Automotive Installed Transfer Cases
When Merchant Automotive sells and installs your transfer case, MA owns the customer experience from beginning to end.
If a problem occurs, bring the truck back to us.
We will diagnose the concern and determine whether the problem involves the transfer case, our installation, another vehicle component, tuning, operating conditions, or another cause.
If our workmanship caused the problem, we will address it.
If the transfer case experienced a qualifying warranty failure, we will address the transfer case warranty.
You do not need to determine which one it is before calling us. That's our job.
Our Commitment
We build transfer cases to be used.
We also recognize that these units often operate in modified trucks, towing applications, work trucks, and demanding environments. When something goes wrong, simply knowing that a transfer case failed does not tell us why it failed.
That's why our warranty process is based on understanding the facts.
We will not automatically deny a claim because a truck is modified.
We will not automatically approve a claim simply because the transfer case failed within the warranty period.
We will determine what happened and why.
If the failure is ours, we will stand behind it.
If another condition caused the failure, we will explain what we found and help the customer understand the options for getting the truck back on the road.