Newbie needs help on M60 oil leak, upper oil pan?

[e34musician]

Hello,
I just picked up a very very clean 94' 530i with 98k on it last Friday. I read this forum for things to look for before I bought it. I just love E34 classic body. The car drives great shifting very smooth. Still ... I just happened to know yesterday that the car has some serious oil leak issue. I'm sure why I didn't detect the oil leak when I inspected the car - the guy drove ~30miles to show me the car and I didn't see any oil leak. Today if I drive ~10miles, there will be at least 3 drops of oil. It is dropping at the bell-housing (not sure if this is how you guys call it) right onto a sway bar before hitting the ground. It seems to be coming down from the driver side (US.)

I took it to a well-known real BMW indy (my friend recommended) in north San Jose area. He mentioned there are 2 possibilities.

1.) Upper oil pan - need to remove suspension? ($500 charge for parts+labor). He will also do the lower oil pan re-seal.
2.) Rear main seal - need to drop trans ($700 charge for parts+ labor).

Questions:
I did a lot search through this forum but I've never seen anyone with M60 engine mentioning about "upper oil pan" problem. Do you guy use a different term for it? I told the indy about other possibilities that I found from this forum (valve cover gasket, timing chain cover gasket, ...) He said this should not be the problem. Should I go for an upper oil pan fix and pay $500 for this? He cannot gaurantee if this will fix my problem though. If not, next is $700 rear main seal ...

Another problem, I have 1221 C/E code from stomp test. The indy mentioned it should not be the in-take leak because the car idles very very smooth. He will charge me $70 (labor only) for replacing the two O2 sensors. I told him that I will do it myself. Where is your good on-line BMW parts store?

Your help is greatly appreciate!

[horseheadnebula]

www.bavauto.com will have most of your parts.

[e34musician]

www.bavauto.com will have most of your parts.

Thanks, hourseheadnebula for the link.

Here is the picture of the leak.



If anyone has any comment, please let me know. I told my indy I may do the upper oil pan this Friday.

[Ross]

I'm sure he knows but remind the indy about the oil pump bolts while he's in there.

[632 Regal]

www.bmaparts.com