2007 BMW X3 transfer case

Bought my X3 used with 80K miles on it 1.5 yrs ago. I started seeing the combo of 4X4, ABS, and Brake lights coming on and took it in. I’m told it’s an issue with the transfer case, and the mechanic pretty much said it would be a few thousand to fix and not to bother. He said when those lights are on it indicates those systems aren’t working, and that seems to make sense as a few random times when these have been on I’ve also experienced some really odd fish-tailing, even when I didn’t think I was accelerating terribly aggressively. I’m not necessarily doubting my mechanics diagnosis or prognosis (although I have pretty much zero knowledge about anything car-related), but since it’s worst-case scenario thought I’d see if anyone had any wisdom to share. I’ve seen a couple other places say to try changing the TC fluid…?

Any insight/advice welcome. Thanks!

BWMs are pretty specialized cars. Great cars but lotsa ins and outs that are very specific. You may want to find a BMW dedicated forum and ask that question, before you decide to do anything.

Is your mechanic a BMW mechanic? Did he give you any computer codes that go along with these warning lights? I’d get a second opinion. And I’d be concerned, since you reported odd handling, that could be dangerous.

Have you posted this question on a BMW forum? Lots of folks there that have the same setup as you.