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Oil in the Radiator System - An Expensive Fix? 850 96

I just couldn't believe my eyes when I pulled into my garage this evening! There was the oily water puddle on the floor right where the car was parked last night. It was a big sticky mess as I soon found out trying to wipe it up. You could see the oil and water mixed together yet still seperated. I opened up the hood and found the same messy mix in the overflow bottle for the cooling system. The plastic bottle is now a black color. Needless to say my heart it my stomach.

Over the past month I have had to add oil and water to both the respective systems. I thought I had a water pump leak but could never see and water come out on the floor. I was also wondering why I was having to add oil, about 1/3 qt. every 3K miles. I'm running Amsoil. The dip stick shows no water on it. Never has the oil light come on. Never has the car show but a normal temperature (mid range on the gauge).

So I'm driving the car 20 miles tomorrow to my mechanic (an independent Volvo shop) to have him tell me the bad news.

So just how bad is it?

Do I need a new engine?

Must be a small hole somewhere in a gasket or is it the engine block?

Can someone break it to me easily?

What kind of $$$ are we looking at? Maybe its time to say goodby to a great car?

I'm feeling really bad!!! :>(






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