Yes, most vehicles are towed with the transfer case in neutral, and the tranny in gear or Park. The reason? To keep the turning of the transfer case output shaft from turning the transfer case input shaft and the tranny output shaft due to fluid friction. It would turn ever so slow, but the transmission output shaft gets its lube from the rotation of the tranny input shaft, and with the engine off, the tranny input shaft will not be rotating.
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Cheers,
TonyMac
2006 Monaco Safari Cheetah 40PMT
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