Well , there's discussion of the Dana 35 and its worthiness on a couple of threads and I've heard that any time in the past that a grand cherokee rear ( Dana 35 ) is in need of replacement , the rebuild is too expensive in a shop to justify the worth . If it is decided that your rear is not going to be rebuilt in your driveway , as it is dedicated work requiring proper gauges to measure run out , clearance , gear pitch and such , then the best choice is to replace with a Dana 44 . For a cj5 , they were found in the dj5 U.S. mail jeeps and that is a direct replacement as it will bolt in without modification which is the best choice to get your TJ up and running soonest at the least expense. Up here locally , there are not many , if any d44's for fit to a CJ chassis and that rear would go at least $300 and up depending on mileage as they are favored for replacement and locally here there just is not the big market for the CJ since the trend is newer jeeps .
its shameful that even the YJ is not abundant in local auto salvage and any yards even close that may have them know that these parts net high profit and are immediately sold to whom ever is seeking parts for jeep clubs and dealers of used jeeps for repair and sales. That makes it difficult to obtain one for replacement for just one jeep and of course means it drives up the cost.
Its not impossible to find a d44 up here , just not common anymore as they are in regions where older model jeeps ( CJ & YJ , for example) , since the trend is new models and leasing is popular.
For us old jeep owners , we are constantly faced with buying on eBay or Craigslist and having to work out price and shipping on heavy items such as engines , trans, t-cases and axles.
A Dana 35 will go for less if found , but the shipping will just kill the purchase and in the end , less desirable . Unfortunately , my only way to upgrade too would have to be finding a d44 from any jeep , such as an older cherokee 1983 and older and cutting down the axle tubes and re-perch for proper leaf or coil spring mount as applicable. In the 10308 zip , you would have to call or go online to recyclers for inventory as anywhere close just dosen't have or keep these parts or even get them as the jeeps just aren't available. The only jeeps that are ever junked are xj's as I haven't seen many YJ's locally on the street or junk yards in at least 5-10 years . We just don't see them anymore here. I have seen 2 or 3 CJ jeeps in the last ten years and only one was resorted. The other cj(s) I have ever seen had neede restoration or repair VERY DESPERATELY.
Not long ago , I was on the kick of trying to locate old salvage dj5 jeeps to convert to a CJ , I guess some one who owns a salvage yard that buy them for project build are driving up the cost .
NYC has strict laws for auto recyclers that a vehicle cannot sit in its yard more than six months before it is to be crushed and recycled. That means they disappear if even found by sales to other yards or just crushed for $$$ in iron. It's disheartening. If my Chrysler 8.25 broke , I would have no choice but to pressure wash the carrier and tubes after disassembly and start from the case with a ring and pinion , new bearings and shims , cluster gears and shims. Just all new from right to left and all in between. But I consider the 8.25 a good candidate for rebuild or swap in our case . Trouble is for your TJ , it would be better to get a YJ rear for easier install but most YJ axles were d35. Rare anyone got a d44 in a heavy tow package. If you did decide to get a 8.25 rear if Cherokees are plentiful in salvage for you , you would have to re-perch it to fit your leafs and the companion flange may be different so the u-joint may have to be upgraded and drive shaft refitted. Of course rear brakes are to be dealt with as well . Sorry our availability and prices are not helpful to you , but I'm hoping for you that locally they will treat you better as in your area , jeeps are very common as you well know and parts , I hope , are more plentiful.
I have been told more than once that if I am to buy a CJ 5 , I should look down south . Been told various places such as Alabama , Tennessee , and just a lot of southern states as they are still very popular. Hoping this helps and I really believe that if possible , an upgrade would be better.
i will respect if you decide to find another d35 since they probably are more available and cheaper . Less trouble to install as that's what you got now. Just hope it's in good shape , wouldn't want you to end up doing it all over again. Really , best of luck and always looking when I can for such parts for that hot ticket upgrade or replacement too . Greg