4 wheel drive will not engage. The 4 wheel drive will engage at the transfer case but will not spin the front tires. Checked the actuator and it seems to be working fine.
Check the oil in the transfer case. If it has lots of metal in it... time for a new one. They aren't the world's strongest.
Another check: Lift the front of the truck, while keeping the rear wheels on the ground. Engage the 4x4 switch (then turn the truck off) crawl under and try to turn the front driveshaft by hand. If it turns and the wheels turn, the transfer case is the problem if it turns but the front wheels don't... front diff issues. Any grinding, crunching etc is also a clue.
SOURCE: 99 Silverado 4-wheel drive not engaging
It does not seem that sufficient diagnosis was done. No, you cant give a specific diagnosis like that without tearing unit down. It's likely that they told you the most common failure and left it at that. Likely there is a problem with your unit...I think this becomes more of a trust issue than a mechanical one. A second opinion from an independent reputable shop may help but either way, you need to have it fixed. In not using it much, it makes me wonder how it got worn.
good luck
SOURCE: 01 Chevy Silverado 4 X 4 not working. 4WD light
Having the same exact problem but with my 1999 escalade. Thought it was the actuator bought a new one installed it transfer case would engage but front end wouldnt lock. Took it out of housing left it plugged in got a friend to go through all the 4wd for me and the plunger never moved out the actuator. Checked my wiring harness which is a four prong ann it had one hot prong like it is suppose to. Traced wires even replaced dash switch same problem. Taking it to local dealership tom to have it checked for codes. I was told it could be the transfercase actuator even though its workin that actuator is what sends power to the front to engage the actuator to lock the differential.
SOURCE: 4 wheel drive will not engage front axle.actuator
On the front axle of your Suburban there is a thermally (an internal heater) activated devise that pushes on a lever to engage the axle. There is a technical service bulletin ( #76-43-01A) on this problem but the repair isn't cheap.It involves installing an updated devise with a DC motor from General Motors which also requires a new wire harness.
I have found that installing an aftermarket one (available at your local autoparts store) that just bolts on will work just as well.
It just threads in to a housing and is very easy to replace.
SOURCE: I have a 2001 Chevy 2500 4X4. Four wheel drive not
Sounds like the chain in the transfer case has broke or the linkage is out of adjustment
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