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Rear diff noise


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I have a thumping noise coming from the rear differential of the car as I drive slowly (coasting or stopping). Sounds like it clanks or thumps with each wheel rotation.

 

Here's the key...when I put the car in Four-Wheel drive, the noise dissapears. I lifted the car - an 88 GL wagon - and had a friend rock the right rear wheel back and forth and the noise seems to come from the front part of the differential.

 

Thanks for any help.

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