# Oil leaking down differential and onto exhaust

**URL:** <https://community.cartalk.com/t/oil-leaking-down-differential-and-onto-exhaust/93125>\
**Category:** Maintenance/Repairs\
**Tags:** subaru\
**Created:** [April 25, 2016, 1:07am UTC](https://community.cartalk.com/t/oil-leaking-down-differential-and-onto-exhaust/93125 "2016-04-25T01:07:30Z")\
**Posts on this page:** 4\
**Page:** 1

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**Author:** ![Umicar](https://avatars.discourse-cdn.com/v4/letter/u/8edcca/32.png) [@Umicar](https://community.cartalk.com/u/Umicar)\
**Post date:** [April 25, 2016, 1:07am UTC](https://community.cartalk.com/t/oil-leaking-down-differential-and-onto-exhaust/93125/1 "2016-04-25T01:07:30Z")

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I recently rebuilt a 97 Subaru Outback Legacy, and everything was fine however, whenever I’ve taken it on the highway, I began noticing a distinct odor of burnt oil. Last night I got home and I actually began seeing smoke. Upon closer inspection, I noticed that oil was running down the differential, dripping onto the power steering and then onto the exhaust. When I looked at the flywheel it had no oil on it so I’m assuming it’s not engine oil, however the oil that is dripping looks like engine oil (Im using mobile 1 full synthetic). The fluid levels are all ok, transmission levels ok, engine oil is a little more than full( I added 1 gallon before starting it up for the first time) and there is differential oil, but I know the smell of differential oil, and the oil that was dripping down the differential was not differential oil. What could it be? I don’t want to have to take apart the engine again, that was a pain in the butt.

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**Author:** ![Barkydog](https://sea1.discourse-cdn.com/cartalk/user_avatar/community.cartalk.com/barkydog/32/2470_2.png) [@Barkydog](https://community.cartalk.com/u/Barkydog)\
**Post date:** [April 25, 2016, 1:13am UTC](https://community.cartalk.com/t/oil-leaking-down-differential-and-onto-exhaust/93125/2 "2016-04-25T01:13:14Z")

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It does not take much oil to cause a problem. Determining the soure of the problem is really the key (duh I know) some common places to look, valve cover gaskets and oil sending unit. Good luck finding the source.

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**Author:** ![Umicar](https://avatars.discourse-cdn.com/v4/letter/u/8edcca/32.png) [@Umicar](https://community.cartalk.com/u/Umicar)\
**Post date:** [April 25, 2016, 5:37am UTC](https://community.cartalk.com/t/oil-leaking-down-differential-and-onto-exhaust/93125/3 "2016-04-25T05:37:45Z")

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Something I wasn’t able to do is replace the crank, could it be that the oil seal went bad? I know I replaced the old flywheel gasket but someone told me that the oil seal is inside the block. If so, is there anything I can do to stem the leak without taking apart the engine again?

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**Author:** ![insightful](https://sea1.discourse-cdn.com/cartalk/user_avatar/community.cartalk.com/insightful/32/2732_2.png) [@insightful](https://community.cartalk.com/u/insightful)\
**Post date:** [April 25, 2016, 8:32pm UTC](https://community.cartalk.com/t/oil-leaking-down-differential-and-onto-exhaust/93125/4 "2016-04-25T20:32:34Z")

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> _...is there anything I can do to stem the leak without taking apart the engine again?_

Use a “high-mileage” oil.