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Transfer output seal leak vs Breather problem


Merton
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I purchased a 2008 Toyota Kluger via a dealer in November 2016. This car has a 5 year warranty and underwent a 90 000km service with Toyota while under statutory warranty. The transfer output oil leak was diagnosed by Toyota at this service.

 The car was sent to an warranty authorised mechanic  who repaired the car under statutory warranty. However, despite having visited the mechanic 6 times, the leak persists and the stat. warranty has since expired. 

The mechanic now claims, that their original diagnosis (and Toyota's)  was incorrect, and that the leak is not coming from the transfer output seal (which they have replaced twice) but another part of the car. If I recall correctly, they believe the leak is caused by a 'breather box' problem. I gather there is a circular plate in this box, which has a small pin hole sized hole in it. According to the mechanic, this plate has a manufacturing fault and have suggested they use a sealant to repair the problem, or, they can replace the entire shaft which will provide "...no guarantee the leak wont still occur, as parts are made in runs....". AutoCo's suggestion is to have the plate sealed rather than have the shaft replaced. 

I'd like your opinions on the following:

1) Do you believe the sealant repair option is going to be the best option? The mechanic does not want to replace the faulty part at $3 000 per shaft, and I am not confident that a sealant repair will be a permanent solution to this leak!
2) Should I be asking the dealer to replace this car?

In my view, this car had a pre-existing fault at purchase, and I have met my obligations to ensure that the car was in good mechanical condition, having had it serviced while still under statutory warranty.  I would like the dealer to replace the car with a similar vehicle, but before I make this request I wanted to check in with the Toyota massive for some alternative opinions. 

Tired and frustrated!!

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11 hours ago, Merton said:

2) Should I be asking the dealer to replace this car?

In my view, this car had a pre-existing fault at purchase, and I have met my obligations to ensure that the car was in good mechanical condition, having had it serviced while still under statutory warranty.  I would like the dealer to replace the car with a similar vehicle, but before I make this request I wanted to check in with the Toyota heads for an alternative opinion. 

I wish you luck. I have never seen this happen.

Why is this other repair not covered under warranty?

Also, please only create one topic per subject.

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Thanks Trent. The transfer output seal repair was covered under the stat warranty initially and I'm covered for 6 months for the labour and parts relating to this repair and its original misdiagnosis. I'm just nervous about having the breather issue sealed only for it to cause further problems for me down the line, when I'm no longer covered under warranty. I'm wondering if I should just ask the dealer for a car that doesn't have a fault with it?

The mechanic said he has never seen this problem on a Kluger before, but did mention that it had been raised on a couple of Toyota forums in the USA, which had recommended a sealant repair job rather than shaft replacement. He also said he thinks Toyota is likely to see this issue become more common in the next 5 years as older cars begin to present the same issue. 

Edited by Merton
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1 hour ago, Merton said:

I'm wondering if I should just ask the dealer for a car that doesn't have a fault with it?

You could try, but don't be surprised if you get no result.

Without seeing the leak, I can only assume that it is leaking from the flange(under the nut) where the output shaft passes through.

If this is the case, then I would throw a new seal in and RTV(sealant) under the nut, also placing a small amount on the output shaft.

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