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I have an 84 240 dl and I have oil leaking arond the water pump and near the back of the engine. I checked the valve cover gasket and it is not leaking at all but when I look at the head gasket it seems as if it where coming from there also, unless the leak is elsewhere and it was being blown back around the head gasket area. I called a volvo shop and they told me that head gaskets don't leak oil externally. Is this true? Because I described the problem to a second shop and they just quoted me a price for the head gasket, yet the first shop told me the problem was more likely to be a front or rear oil seal because head gaskets dont leak externally. The car is not overheating or mixing oil and water. So do head gaskets leak externally (oil) or not? If not then what do you guys think the problem might be.
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