Well after selling my YJ back in 2001 I've been trying to figure a way
to get back into a Jeep ever since. I finally did it a few weeks ago
without selling my wife, her car or the two kids and landed a 97 TJ
sport from a dealer. Upon taking the Jeep to my local mechanic for PA
inspections (purchase was in NJ) he noticed a noise coming from the
rear diff and after taking it apart realized the bearings and one axle
shaft were pitted and worn and would need to be replaced. Obviously
not something I heard during the test drive or ride home. I was not
that concerned as the dealer included a Powertrain warranty in the deal
which included coverage on "all lubricated parts in the differential".

So I call the warranty company with a description on the problem and
they send an adjuster to look at the rear. After taking pictures and
writing the report they confirm what the mechanic found that the pinion
bearings and axle shaft would need to be replaced and this type of
repair is typically covered. (estimated between $800-$1000 by my
mechanic) However the claims adjuster states that this was a
pre-existing condition at the time of sale and there is nothing they
can do for me. So now I figure I'm screwed. After settling down I can
see the warranty company's point. They probably see cases like this a
lot.

Next step, the dealer. Much to my surprise I call the dealer and
explain the situation and they say bring it in we'll take care of it!
Not only that, they offered to come tow it from my mechanic to their
shop (50 miles). Too good to be true? We'll see, but I am going to
give them a shot at repairing it as there will be no money out pocket,
yet and they seem to be willing to make good on this deal. There's no
doubt there's some risk involved buying used and I've learned some
lessons for the next time. I have to believe the dealer was aware of
the rear diff issue and was pushing the burden to the warranty company
to save a buck.

Hopefully in a week or so I'll be happily driving the TJ around waving
to the rest of you again...(hopefully no poorer than I already am) !!!

Hope to be Jeepin soon!!!