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My automatic/4x4 96 Tahoe suddenly stopped shifting past 2nd gear it will shift from 1st to 2nd no problem it has reverse, but when it tries to go from 2nd to third automatically it won't shift the rpms just keep getting higher in second. If I shift from 2nd to 3rd manually it's like it's in neutral, I got the Tahoe from my uncle so not sure about maintenance/service history but I love my Tahoe and I'm hoping it's a fairly cheap fix Covid got the wallet running on E.... Also the push button 4wd won't engage into 4 high or 4 low, could these issues be related or more than likely separate issues, any help is very appreciated thanks
 

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The gears in the trans are in gear packs that have clutches in them. In time, these clutches ware down, and although the clutches in the gear pack may still work, that doesnt mean that another gear packs clutches are not bad. Chances are they all have ware, but the 3ed gear pack is just the first set to quit pulling in your case. As much as you may not want to hear this, you need to find a good transmission shop, and have the trans remamed. Some shops do call this a rebuild, but be careful with that. Some places will only replace the bad parts and call that a rebuild. You want a remanufacture. In that, they replace all the clutches bands, and (servos if needed). This should cost around $2500 or less. The other way around this is to get a used trans and just do a swap, but then you dont know what your getting. You need a trans from about the same year and a 4x4. The biggest issue with a used trans, is that these trucks are getting old, so your replacing an old trans with another old trans. Also if you replace trans trans fluid, the new fluid will have cleaning agents in it and will wash away any build up on the clutches and bands and that can cause a trans to slip if there is ware .
 

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If you have 1st and 2nd, forward clutch pack is good and 2 planetary gear sets are good.
If you have reverse, the reverse clutch pack and reaction sun she'll are good and the 2-4 bràke band is good.
If you don't have 3rd and 4th gear, the 3-4 clutch pack is bad or worn.
It will need a rebuild.

How many miles?
Check the fluid level and condition.
Do a fluid and filter change before deciding on a rebuild.
5 quarts of ATF and a filter will not cost much.
 
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