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Old 08-13-2012, 07:56 PM   #2
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Join Date: Apr 2008
Location: Boston
Posts: 4,971
My Ride: 2003 325xi
It sounds like a leaky axle seal.

If so that would be diff fluid leaking, not engine oil. Is the axle just a little wet, or do you see a wet stripe on the plastic shield below?

The axle seal should be replaced with each axle- who did the work? Indy? Stealer? You? If stealer, it should be covered under warranty.

Before pinning it on the axle seal though, have a look to see if the valve cover gasket is leaking. That would explain the oil leak, smell, and oil consumption issues. Look at the metal shield next to the motor on the passenger side to see if it's stained brown with burnt oil.
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