1989 535i (e34) Rear Oil Leak

[angusbn]

Suddenly experiencing a oil leak by the rear axle that is dropping oil on the rear exhaust pipe behind the rear tires. Any ideas? Save to drive or not?

[Blitzkrieg Bob]

an oil starved diff will breakdown $$$.

try to find out what/where it is leaking.

if it is the axle output shaft seal. I think the kit is less than $20.00, and is a relatively straight forward fix.