Rear differential rebuild - Dana 35 and 3.07 gears

TheYellowJeep

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Good afternoon!

Over the past few weeks I went through a whining sound on coasting/decel coming from the rear differential of my 05 Jeep TJ. I took it to the shop where I was told the pinion nut loosened up and that the inner workings of my rear diff are all pretty damaged, ultimately recommending a rebuild.

Current setup: Stock Dana 35 with 3.07 gears, 31 x 10.5 in tires, no lift
Quote to rebuild what's there: $500 parts, $1500 labor

Question 1: Is this pretty standard for a rebuild cost?
Question 2: I don't really wheel and plan to mainly use the jeep for occasional light trail use, if snow is pretty bad on the roads, etc - Is it worth pursuing a Super 35 rebuild + or - regearing to 4.10 at this price point? Only planned upgrade is maybe a 2 in lift and replacement of shocks/springs etc if they go bad.

I appreciate any thoughts or input from y'all!
 
look on facebook marketplace for a stock 35 in 3.07 gears for $100 bucks. They regularly are sold for that around me. Swap it in and use your other $1900 to do all the other stuff you want to do later on once you get back on road.
 
What parts are they quoting for the $500? And that labor cost is way too high for a rear axle rebuild. Should be about 5-5.5 hours total.
 
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look on facebook marketplace for a stock 35 in 3.07 gears for $100 bucks. They regularly are sold for that around me. Swap it in and use your other $1900 to do all the other stuff you want to do later on once you get back on road.

Good advice, I think. Lots of folks pull perfectly fine stock Dana 35s when building for bigger tires. A super 35 is overkill for your intentions and only can be done with a locker which you wouldn't need either. The price of the labor does seem high to me as well but everything seems to be shooting up.
 
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Quote to rebuild what's there: $500 parts, $1500 labor

Way too high. Look around for a 35 3.07 take out, or find a set of axles with a better ratio like 3.73 or 4.10. In my area you can find a good 30/35 3.73 combo for less than $1,000.
 
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You can save yourself some money if you take out the rear axle yourself. Take out, remove axles etc.
But more work and not really needed for most/good mechanic to switch gearing. Labor should be more like $500.
 
Had both axles regeared last month for $2,000 total parts/labor. Keep in mind I’m in SoCal where everything is excessively expensive. Labor costs should be materially cheaper where you reside.