Let me first explain what is going on with this car. It has around 115k miles and the check engine light came on last week. There is now oil in the coolant.
2-3 years ago, this XC70 had a slow coolant leak. Our mechanic was afraid it was the head gasket, but he put aluminum flakes in the coolant and the leak went away. The car has been fine ever since, until now.
So with that in mind, I have a few questions:
Does this car definitely have a blown head gasket? No one poured oil in the coolant, so is there any other possible cause of oil in the coolant besides a blown head gasket?
Assuming this car has a blown head gasket, is it worth repairing or should we sell the car? Our mechanic won’t repair the head gasket and the dealership gave a phone estimate of $4k without looking at the car. Kelley Blue Book calculates the resale price at $7400 for this car with this mileage, in very good condition (which the car will be in if it’s fixed).
How much should a head gasket job cost for a 2005 XC70 that has been well maintained?