Differential fluid lubricates the differential in all-wheel drive (AWD), four-wheel drive (4WD), rear-wheel drive (RWD), and front-wheel drive (FWD) vehicles. In most cases, front-wheel drive vehicles have a transaxle instead of a separate differential, but there are some instances where FWD vehicles have a stand-alone differential.
Many vehicles need a properly working differential system for the smoothest ride possible. While all vehicles have some variation of a differential system, the location of the differential depends on the drive type of the vehicle. The differential system delivers power to the wheels while allowing the wheels to turn at different speeds.