The present invention is directed to a Banjo type axle assembly with a drop out third member carrier for the pinion shaft assembly, ring gear assembly, the rotatable differential house assembly and the differential bearing clamp assembly. Said drop out third member carrier and the rear axle housing are constructed sufficiently to house a 10.5 inch diameter ring gear. In one preferred embodiment the drive pinion assembly and the ring gear assembly exhibit a mild hypoid gear set orientation. In one preferred embodiment said drop out third member carrier has substantially uniform dimensions in thickness and has a symmetrical bolt pattern between a pinion shaft side and a non-pinion shaft side with a total of twelve bolts to affix said drop out third member to carrier to said rear axle housing. An oiling shelf has extra material to house pinion bolts as part of the pinion shaft assembly.