I have a '98 Cherokee Classic (2WD, AT) that required a transmission rebuild in April of this year. Everything seemed to go well, but in late summer it developed a slow leak at the rear seal. The rebuild was still under warranty, so I took it back to the shop. As it turns out, the spring that holds the seal in place had popped loose and damaged the drive shaft. The shop owner said that was very unusual, and he replaced the seal and the drive shaft free of charge. I thought that was the end of it, but now it's leaking again in the very same place. I hope it's just a faulty seal, but I can't help but worry that there's more going on here. I'm going to take it back to the shop ASAP, but, if it is the spring again, does anyone have any theories as to what might be causing it to fail?

 

I don't dig that far into transmissions so can't say for sure...but often when a seal keeps failing it's the result of a bearing or bushing behind the seal that's worn out.

 

+1 leading cause of the same failure in our Jeeps' transfer cases.