'06 X3 Rusted Transfer Case
I have a 2006 X3. About 6 months ago the front drive shaft went out. The dealer explained that I could remove it and drive it (permanently) as 2 wheel drive. Not looking to spend the money to replace it just to gain awd, I took him up on the offer.
A few weeks ago I was hearing a rubbing/high pitched noise coming from the underside of the car. I took it to my local Bmw mechanic (not the dealer). Turns out the transfer case had rusted out. According to the mechanic, when the dealer removed the front drive shaft there was nothing to hold the output flange in place. The flange fell out and water got in the transfer case. The dealer disputes this and says the two are unrelated.
Who is correct?