The rear differential is an important car part that transmits power from the transmission to the wheels while allowing them to rotate at different speeds. There are several types of differentials, including open differentials which allow wheel speed differences, locking differentials which force equal wheel speeds, and limited-slip differentials which act as open differentials normally but lock during turns. Common problems with differentials include leaks that cause lubricant loss and increased friction, as well as noise from friction between internal gears that should be addressed promptly to prevent damage.