The heart of the four wheel drive in the longitudinal engine BMW X models (X3, X5 and the X1 E84) is the ATC transfer case. It has two faults, and you can feel both while driving.
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The first is wear of the clutch pack and the fluid: in a slow, tight corner (a car park, a roundabout) the car jerks and "hops", as if the drive grabbed and let go. You can also get a jerk when pulling away on a slope. The second is the plastic actuator gear: the position signal is lost, the brake, ABS and 4x4/DSC lights come on together on the dash, and a clicking is audible from the transfer case when you switch the ignition off.
Workshops often propose a full transfer case replacement straight away. But the plastic gear can be replaced on its own, and the wrong tyre size or a mixed set of tyres also imitates the jerking, because the transfer case then slips continuously. So clear up the tyres and the fault code first, before you pay for a transfer case replacement.
What to check
- In a slow, tight corner (a car park) watch for jerking, binding and a "skipping" feel
- When pulling away on light throttle, can you feel the drivetrain jerk
- Watch the dash: 4x4, ABS, DSC and brake lights together point at the actuator