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Need a little help with a used Jeep Cherokee

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I bought a used Jeep Grand Cherokee Limited 1994 model with the 4.0 in line 6 cylinder engine. My question is: do these things have to run in four wheel drive all the time? It has the selector for 4 Hi and 4 Lo with a Neutral in between, but when I shift it to this Neutral, the whole vehicle seems to be in Neutral, no matter what the other shifter position is in.
 
Do you have a pic of the selector? Mine has 4h,4l,N and 2. I keep mine in 2 unless i'm off roading.
 
This.

You should only run 2HI most of the time. I use 4HI on really loose gravel, sand, etc. BELOW 50ish MPH ONLY!!!!

Agreed. Some jeeps came with what is called "full time 4wd" basically its all wheel drive.Thats why I want to see the gear box selector.
 
Yours may be the Quadratrac that is only 4 Hi and 4 Lo.... If there is no 2Hi selector then that is most likely what you have.

I have no 2 Hi. Just the 4 Hi and 4 Lo and Neutral in between.. I just want to make sure before I drive it too much that I'm not destroying the transmission or transfer case. In this case, which should I run in for normal road driving without bad weather conditions? I should also add that there is an Overdrive release button on the dash for towing situations.

I guess I am a little confused as to the meaning of the Hi and Lo. Does it refer to torque or to gearing ratio?
 
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Sounds like you have a full time case. They have a differential inside the case that allows you to run in four wheel drive all the time without doing damage. There is a viscous coupler that is there to provide near lockup when there is a difference in speed between the front and rear driveshafts. Basically, if the rear (or front) starts spinning the viscous coupler will heat up and provide a near 50/50 power distribution front to rear.

The problem with this setup is that the Viscous Coupler is a considered a wear item. After between 100k and 150k miles the coupler wears out. The failure mode on these is to provide constant lockup which is like driving around in 4hi on a "normal" transfer case. This can damage other parts of the driveline and make driving it a bit of an experience. The first symptom is the front tires scrubbing at low speeds when turning a corner. If you're in a parking lot and turn the wheels you'll hear the front tires chirp and the Jeep will buck and jerk. Curves at speed can be a bit unnerving as the front and rear axles can no longer turn at different speeds.

Yes, I have a 1996 Jeep with the same setup and replaced the viscous coupler. It's a PITA but can be done by someone halfway mechanical in a day.
 
Your is all time 4 wheel drive meaning all wheel drive shifting to neutral puts whole trandy and drive units in neutral design was made for ease of towing behind a rv also limited slip if two wheels on one side is stuck other two possible pull out without 4wheel high. Same design as roadsmith trike kits similar to Saturn vue awd
 
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