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81 911SC oil leak/engine rebuild


Vehicle Information: Model: 911 SC; Year: 1981; Body Type: Coupe; Total Mileage: 83,300;

Recently my engine was out of the car for a transmission rebuild. Since it has been put back in an oil leak is present. It occurs only when the engine is running. The oil sending unit and thermostat O-ring have been replaced. As best I can determine from inspection mirror observation and after cleaning the engine up well and looking at the results from underneath while the engine runs at idle, the source is not from the top of the motor. Oil collects at the bottom center of the clutch bell housing where one can see the flywheel and drips onto the crossover pipe below every seven seconds. What is the likely source of this leak? Does the engine need to come out to fix it? Should I be driving this car? Additionally, I have one broken headstud in cylinder #1. If the engine must come out, I am considering addressing the head bolts, too, which, I guess, means an expensive rebuild. One shop estimates $5000, another says $10 - 12K. What could account for the large price discrepancy? I want the job done right, but cannot overlook several thousand dollars on my budget.

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