// March 30, 2025

Oil Leak Under Your Car? When to Worry and What to Do

You step out to your car, ready to start your day, and there it is – a dark, greasy spot on the driveway. Is this serious? Can I still drive? How much is this going to cost?  

An oil leak is one of the most common car issues drivers face, but knowing when to worry (and what to do next) can save you from stress, breakdowns, or even major engine repairs. 

Is It Really an Oil Leak? 

Before jumping to conclusions, it’s important to confirm whether that spot under your car is actually oil. Vehicles use several different fluids, and many of them can look similar at first glance. Here’s how to tell the difference: 

How to Identify Oil Leaks:  

Engine oil is typically brown or black, depending on how long it’s been since your last oil change. It has a slick texture and often leaves a greasy residue on your fingers.  

Another telltale sign is the smell – oil leaks usually come with a burnt or petroleum-like odour, especially if the oil has dripped onto hot engine components.  

As for location, most oil leaks will appear under the engine bay, usually toward the front or centre of the vehicle. If you see fluid near the wheels or at the rear, it’s more likely to be something else. 

Other Common Fluids to Rule Out: 

  • Transmission Fluid: This fluid is usually red or pink, though it can darken over time. It’s slick and has a slightly sweet or chemical odour. A leak often appears under the midsection of the car. 
  • Coolant (Antifreeze): Coolant can be green, blue, orange, yellow, or even pink depending on the type. It has a distinct sweet smell and a thinner consistency than oil. 
  • Brake Fluid: Brake fluid is generally clear to light brown and also slick, but it’s more watery than oil. Leaks near the wheels or beneath the brake master cylinder are telltale signs. 

Common Causes of Oil Leaks 

Once you’ve confirmed it’s engine oil leaking, it’s time to understand where the leak might be coming from. Oil can escape through various parts of the engine, often due to wear and tear or poor maintenance.  

Here are the most common culprits: 

  • Worn or Damaged Gaskets and Seals: Over time, rubber gaskets and seals can crack, shrink, or degrade – especially if the engine gets too hot. Valve cover gaskets, oil pan gaskets, and main seals are all common leak points. 
  • Oil Filter or Drain Plug Issues: If the oil filter or drain plug is loose, improperly installed, or has a damaged washer, it can cause oil to drip out. This is a frequent issue after an oil change.  
  • Old or Degraded Engine Oil: Dirty, thickened oil can lead to higher engine pressure, which may force oil out through weak seals or gaskets. Regular oil changes help prevent this problem. 
  • Cracked Oil Pan or Valve Cover: Physical damage from road debris or corrosion can cause cracks in the oil pan or valve cover. These leaks are usually more severe and should be inspected quickly. 
  • Improper Oil Change Service: A rushed or careless oil change can lead to cross-threaded drain plugs, over-tightened filters, or missed leaks. Always double-check work or go to a trusted mechanic. 

When to Worry: Severity Signs 

Not every oil leak is a reason to freak out (change this section to – Not every oil leak is a cause for concern) but some are definitely red flags. The key is recognising when a small issue could turn into a big (and expensive) problem. Here’s how to gauge the seriousness of your leak: 

  • Small Drip vs. Constant Pooling:  

A small drip every few days might not be urgent, but it still needs monitoring. However, if you’re seeing fresh oil pooling regularly under your car, that’s a sign of a more significant leak that should be addressed ASAP. 

  • Check Engine or Oil Pressure Light is On 

If your check engine light or oil pressure warning comes on, that’s your vehicle telling you something’s wrong. These lights could indicate dangerously low oil levels or engine trouble caused by the leak. 

  • Burning Oil Smell While Driving 

That sharp, burnt-oil scent while driving or right after parking is a red flag. It usually means oil is dripping onto a hot engine component – not only bad for your engine, but also a fire hazard in extreme cases. 

  • Smoke from the Engine 

Seeing smoke rising from under the hood? Pull over. That’s often the result of oil hitting hot exhaust parts, and continuing to drive can do serious damage – or worse. 

  • Low Oil Levels When Checked 

If you check your dipstick and the oil level is below the minimum, you’re running the engine without enough lubrication. This can cause overheating, friction, and permanent engine damage. 

What You Should Do (Step-by-Step Guide) 

If you’ve confirmed you have an oil leak, here’s what to do next: 

1. Don’t Panic – But Don’t Ignore It 

A small leak doesn’t mean your car is about to break down, but ignoring it can lead to engine damage or a breakdown later on. Stay calm, but take action. 

2. Park Your Car on a Flat Spot 

Park your car on a flat surface – avoid checking on any slope, whether uphill, downhill, or sideways. Make sure the engine is off, and for the most accurate reading, check the oil when the engine is cold. This allows the oil to settle, giving you a true indication of the oil level. 

3. Check Oil Level and Top Off if Needed 

Use the dipstick to see where your oil level sits. If it’s low, topping it up with the correct oil helps keep your engine protected in the short term – especially if you need to drive to a workshop. This won’t fix the leak, but it prevents low-oil damage. 

4. Clean the Engine Area to Trace the Leak 

Wipe down any obvious oil buildup in the engine bay or use a degreaser. A clean surface makes it easier to spot fresh oil, helping you or your mechanic trace exactly where the leak is coming from. 

5. Visit a Mechanic for Diagnosis if Leak Persists or Worsens 

If the leak continues or worsens, it’s time to visit a trusted mechanic. Leaks can come from gaskets, seals, or other components that need professional attention – and early diagnosis can save you from a much bigger (and more expensive) repair later on. 

Can You Drive with an Oil Leak? 

Short Answer: It Depends 

The million-dollar question – can you still drive if your car is leaking oil? The answer really comes down to how severe the leak is and how long you plan to drive. 

If it’s a minor, slow drip, your oil level is stable, and you’re driving a short distance (like to a nearby workshop), it’s usually okay to proceed – but cautiously. 

Stop Immediately if: 

  • The oil is leaking in large amounts or pooling under the car quickly 
  • You notice smoke or a burning smell 
  • The oil pressure light comes on 
  • Your dipstick shows low or no oil 

When in doubt, it’s always safer (and cheaper in the long run) to have your vehicle towed to a repair shop rather than risk catastrophic engine damage. 

Preventing Future Oil Leaks 

Oil leaks can become more common as your vehicle ages, but regular maintenance goes a long way in reducing the risk. Staying up to date with oil changes and routine inspections gives your mechanic the chance to catch worn seals, gaskets, or oil pan damage early – before they turn into more serious problems. 

Using the correct oil and filters, as recommended by the manufacturer, is essential. The wrong type can increase internal pressure or cause seals to wear out faster. It’s also a good idea to check under the hood regularly for any signs of trouble, like drips, unusual smells, or sudden drops in oil levels. 

Keeping key components – such as spark plugs, belts, and hoses – in good condition can also help prevent small issues from developing into costly leaks over time. 

Do You Need Help with an Oil Leak? 

Oil leaks might start small, but they can turn into major headaches if ignored. Whether you’re dealing with a slow drip or a serious spill, it’s always best to get it checked out before it leads to bigger – and more expensive – problems. 

If you’ve noticed an oil leak or suspect something’s off, don’t wait for it to get worse. At Kate Presnell Bodyworks, our experienced technicians can quickly diagnose the issue, repair the root cause, and get you safely back on the road. We use quality parts, offer transparent service, and treat your vehicle like it’s our own. 

Don’t let a leak linger. Contact us today  – your car (and your driveway) will thank you.