One problem related to transfer case has been reported for the 2008 Nissan Xterra. The most recently reported issues are listed below. Please also check out the statistics and reliability analysis of the 2008 Nissan Xterra based on all problems reported for the 2008 Xterra.
After noting a repeated noise that sounded like driving over rumble strips, we discovered from our mechanic that we were facing a $6,400 repair for a issue that was well known and documented but only covered by Nissan up to 80,000 miles, which our car has exceeded. The entire transmission, radiator, transfer case and other parts are destroyed by a leak of the radiator into the transmission. We were never alerted to this major defect and now have no recourse back to Nissan to cover the repair. What a tremendous lack of accountability and disregard for potential safety of drivers by Nissan.