2011 with 85K, really nice condition, NO oil leaks, oil was changed ~ 2000 miles ago, oil light did not come on until it was down 5 quarts, the car runs great seriously but smokes at 3,000 RMP or on hills when the turbo kicks in. Dealer did a basic compression test, 2 are low...30/70%, the conclusion was a used motor, went to an independant shop, suggested valves and turbo replace, this was verbal no investigation work was performed. The overwhelming question to the dealer was where did the oil go.......I am being spun in circles help

 

I'd suggest you have the independent shop also do a compression test to start. As to where oil can go, if you say you burned 5 quarts in 2000 miles, the most likely suspect is the engine's rings. Investigative work would be to look for any leaks/oil spotting etc (I had a turbo oil return seal go on an 950T and the car dumped 2 quarts in 500 miles - but there was plenty of mess under the hood to know it was a leak). Other possible causes could be VVT gears/cam seals leaking up front, failed PCV oil separator (engine would also smoke but you'd see an oil trail into the intake / throttle body etc). I suppose valve seals could leak but I've never seen that as a common issue to Volvo, nor see a car consume that much oil due to valves. Finally you get to the turbo - there it can be an oil return line issue or the turbo seals. There you'd send the oil right now the tailpipe where it would be burned by the cat (and risk ruining it). That's where I'd look at the spark plugs to see if they show any oil/black. GIven the suspect compression test, if the low compression was in adjacent cylinders, I'd also test for a failed head gasket (I've seen gasket leak between two cylinders which can push oil or water into bad places and can bleed compression. The compression test should also include both dry and wet tests. The wet tests drops some oil into the cylinder which will temporarily help worn rings seal and bump the compression. My guess is that the Indy tech was saying that it could also be a failed turbo (true) but I'm not sure why the reference to valves unless they were suggesting to have a valve job done while the head was off to replace the pistons and rings... Post up how you make out. Sounds like you need a few more tests before deciding on a rebuild or a used replacement engine.