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Locate a dirt parking lot or field and engage the 4wd. Make a slow tight turn and you should feel some resistance while turning as the wheels dig in and fight one another causing the steering wheel to shake somewhat too. Do not attempt this on pavement or damage may occur. If you can turn freey and not notice any difference then when your in 2wd its likely not working.
According to the mechanic who works on my 94 Jeep it's one of three
things: 1) Corrosion on the connector to the switch (which is located
on top of the transfer case). 2) A bad switch. Part cost about $22.00
or, 3) A bad console display. he says they have had a fair number of
console display units fail.
The service 4 wheel drive light comes on because there's a problem. The biggest causes of this I've seen are a software glitch in the final drive control module which the dealer can fix by reprogramming and the other is usually the electric actuator on the front axle housing. The only light that comes on by a timer is the one that says, "perform service" in your overhead console or odometer.
you have to get the 4 wheel drive system fixed. that is not a maintenance indicator there a a problem and a related DTC when you see that message the code most be checked and repaired it cant be simply reset
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