I hope I'm posting in the right place but wanted to ask for any assistance/info I can get.

I just bought a super clean 1996 Volvo 850 Turbo for $600. I bought it from a known local non-profit community garden. I knew it had a coolant leak going into the purchase but have noticed a few other things since then.

When I went to put water in the car I noticed ALOT of tan gunk/paste in the water reservoir. It also has a noticeable leak under the car. I usually add about a 3rd of a gallon of water whenever I drive it (usually under 20 miles at a time). I know the tan paste is either oil or transmission fluid mixing into the coolant/water but have no clue where it's coming from.

I haven't been able to pinpoint the leak but I know it drops to the ground around the center of the car right below the windshield. So it's in the back of the engine. I didn't get a chance to refill it completely today and I could hear a pretty loud hissing noise coming from where the leak is when I got home.

Here's a short list of what I do know -

1) The car runs like new. I cannot hear any bad noises from the engine at all. I literally thought the car had stalled at a stoplight (it didn't) because it runs so quiet.

2) It is not losing any oil at all. The oil is light clear brown with no signs of any tan paste on dipstick or under cap.

3) The transmission fluid seems low but I don't have any reference until I refill it. No signs of tan paste on dipstick.

4) The car does not overheat. The gauge is slightly above 50% whenever I drive. No warning light on the dash comes on. But it does seem hot when I open the hood after a drive.

4b) The electrical connector under the water reservoir has been disconnected. I believe it's for low coolant dash warning light. So I don't know if the previous owner disconnected any others sensors.

5) I haven't noticed any smoke coming from the tailpipe.



What I would like from you guys if i can ask is if you have any ideas about the coolant leak and the tan gunk/paste. I have asked around work and had answers from bad radiator, bad pcv, heater core, water pump, a coolant hose or the dreaded head gasket of death.

I guess what I would really like is -

1) Guesses on the cause of the leak and the tan paste.

2) Recommendations on a course of action with repairs. What tests to start with? What I might expect for diagnostic costs (ballpark).

I stopped at a small garage that works with foreign cars and after I told him about the tan paste he said he needs between $100 - $500 just to look at it and tell me what's wrong with it....before repairs. Seems steep but this is the first Volvo I have ever owned so I don't know about costs yet.

Even with the problems I am happy with the purchase. I have owned the car for just a week and have already had 4-5 offers to buy it. One guy from Arizona wants it for the $600 I have in it and he'll ship it from Ohio to him. The car is that clean. I am now a motivated Volvo fan. I absolutely love the car and would like to fix it to be my daily driver so any help you guys can give me will be forever appreciated.

Thanks!


p.s. I have parked the car and won't be driving it until it's repaired.



edit: The leak was coming from a 4-5 inch hose going into the turbo. I have a guy replacing it as I type for $75. He said all the hoses are covered in oil and that is showing a major problem somewhere.

Thanks for reading guys!

 

Hey UFO ate my cow, I'm sure I have already replied to your issues somewhere and even linked video's to you. What more do you need? The rad is likely bad, mixing oil into the cooling system, you have bad coolant hoses, like the one you found at the turbo, and yes I will still give you $600 for it and get it picked up from your location if the bottom end isn't rusted out.

Oh, do plug that coolant bottle sensor back in so you will know when the system is low.

 

Did this get resolved? I'm curious if you found what was messing up your coolant.

 

I believe it was a bad radiator.

 

I'm having a similar issue, but with water in my transmission fluid, presumably due to a crack internally in the radiator.

The coolant is under greater pressure than the engine oil, isn't it? So he'd end up with water in the oil, not oil in the water, just as I have water in the transmission rather than transmission fluid in the cooling system.

 

I'm pretty sure the oil pressure in the rad is higher than the coolant.