Subaru - Outback :: 1997 - Oil Leaking Down Differential And Onto Exhaust


Apr 25, 2016

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.

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