My S40 has been leaking small drops of oil on the passenger side for a few weeks. I took it to local shop and they said they did not have the tools to make the repair and that I should take it to the dealer. Dealer took a look at and believes it is the seals and likely the hubs need to be replaced. All in I am looking at $2,500. Car is a 2006 and has treated me well but at this point I am having trouble justifying the expense. Dealer mentioned the oil could damage the timing belt. I took a look and from what I can see the belt looks to be in good shape. The car was not low on oil as well. I use the car primarily for short trips of no more than 10 miles. Realistically, how long would I be able to drive the car as this point? Is there anything that I could do as a band aid at this point to keep me in the car for a few months?

 

"Seals" can mean one (or more) of dozens of things, so it's hard to say. There are plenty of places that an engine can leak oil, but if it's not gushing out it's usually more of an annoyance than a real problem. I'd recommend doing one of two things to determine where the oil is coming from. First, you can clean the oily engine area with some engine cleaner spray and a (careful) pressure-wash (just make sure not to directly spray anything electrical). Then you just look for the "new oil" to see where it's coming from (always follow the parth up to the source). Or, you can add a UV dye to the oil and use a black light to spot the "fresh leakage". It could be something simple, and should be looked into if there's any chance that the leak could contaminate your timing or serpentine (accessory) belt(s).

Also, hubs are solid chunks of steel, and never fail. Bearings do (and are often purchased attached to hubs to save time). Here's a short(ish) video I did on replacing the front bearings and hubs on my 2005 V50...