1999 Silverado rear axles are LEAKING. Any idea why?

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Should be set up something like this...

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I would definitely blow out the axle vent while it's there. Also wouldn't hurt to check the runout of the axle shaft to make sure everything is straight as well as replace the bearings while it's all apart.
 
Originally Posted By: Georgiey22
UPDATE - I was present when the shop installed the axle gaskets and visually observed the install occur. The gaskets were provided by the mechanic which is good news. When they installed the fresh oil into the diff fill hole, the mechanic accidentally overfilled and it spilled onto the shop floor. He wiped it up and reinstalled the fill plug. When the axles were exposed they appeared to be in good condition. Not sure the issue however I will be taking the truck into the shop tomorrow so they can look into the issue for me, should be an interesting discussion. Will keep all updated.
I'm pretty sure that proper fill level is 3/4" below the fill hole. Sticking your pinky finger in and bending it down towards the fluid should get you pretty close. You can also check the level with an allen wrench with a 3/4" drop and rotate it down towards the fluid. If the original seals deteriorated enough to harden and score the axles, you may have to re-locate the seals with "axle saver kits".
 
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Everything is looking good for now. I've put 200 miles on the National gaskets/seals with no leaks thus far. Hopeful we have solved the concern.
 
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