Transfer Case Fluid for 2006 GMC Yukon XL 1500

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Oct 7, 2020
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Looking for confirmation on what fluid to use in the transfer case of my 2006 GMC Yukon XL 1500. There are two options in the owners manual: Transfer Case (All-Wheel Drive with Stabilitrak) calls for DEXRON-III and Automatic Transfer Case (Four-Wheel Drive) calls for Auto Trak II. I have the NP8 RPO code, which I think means the 246 transfer case, and the JL4 RPO code, which I think means I have Stabilitrak (but maybe it just means i have "Active Brake Control"? is there a difference?). I have buttons for 2Hi, 4Hi, 4Lo, and Auto 4WD on the left side of the instrument panel and a traction control button on the far right side.

So it really seems like this comes down to whether or not I have Stabilitrak. If I do I think I should be using DEXRON-III. This is of course no longer available, so I should instead be using the GM 88861800 manual transmission and transfer case fluid (apparently DEXRON-VI isn't backwards compatible in transfer cases). But, almost everything I read online says the 246 transfer case should use Auto Trak II. Is Stabilitrak in fact the difference here? And is there a definitive way to tell whether or not I have it, and therefore which fluid I should be using?
 
Yours would require the Autotrak II fluid as it has the auto feature. Personally, unless AT II is a great price, pick a quality synthetic ATF and carry on. My AT II equipped trailblazer has been running this way for nearly a decade.
 
Thanks for the response. I guess what's confusing me is the description of "All-Wheel Drive with Stabilitrak." Does this mean full time all wheel drive with no option to select 2Hi, 4Hi, 4Lo, or Auto? Looks like the Denalis might have had this setup.
 
The fact that it’s pre-2008 and Auto means you need Auto Trak II. The stabil Track detail is a red herring. I suppose if you don’t use the Auto setting, you can get away with Dex III, but it’s been superseded so you can use Dex VI.
 
Auto Trak II

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Look close on the transfer case itself

My ‘02 2500HD has a tag on T case housing showing requirements
 
So sounds like Auto Trak is the way to go. The Valvoline transfer case fluid is the same cost so I'd prefer to just stick with what the manual calls for. I do have the Maxlife ATF in the transmission, and I've used it to top off power steering, both of which seem to be working fine. Just not sure I trust it completely in the transfer case. It's definitely cheaper but I feel like this is one of those cases where I'd rather spend the extra $10 and not worry about it. Thanks to everyone for your help here.
 
I'd use the maxlife as you have it on hand. There is nothing really fancy about the transfer case. I use a multi vehicle atf in mine.
 
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