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Warning signs

Car leaking oil

How much it's losing matters more than where.

A car leaking oil usually has a worn gasket or seal letting a little out, and a slow seep can wait a short while if you keep an eye on the level. A drip that leaves a fresh patch every night, a burning smell or the red oil light can't wait. What matters most is how fast it's losing oil, because an engine that runs low damages itself.

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A drip that leaves a fresh patch every night, a burning smell or the red oil light can't wait. What matters most is how fast it's losing oil, because an engine that runs low damages itself.

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Last updated 3 November 2026 · By the Mechanic Sorted team, NZ · Our editorial policy

Red oil light, or smoke from under the bonnet? Pull over

The oil light means oil pressure has dropped, and an engine running without it can be badly damaged quickly. Pull over somewhere safe and switch off, and don't restart it to see if the light goes away. Oil dripping onto a hot exhaust can smoke and catch fire: if there's smoke from under the bonnet, get everyone away from the car and call 111.

Is it definitely oil?

AA New Zealand's guide to leaks sorts them by colour. Brown, black or amber is usually engine oil. Bright green, orange, pink or blue is coolant; red that browns with age is automatic transmission fluid; and clear water after a drive on a humid day is usually the air conditioning draining, which is normal.

Slide a sheet of cardboard under the engine overnight. In the morning you'll see the colour, the size of the patch and roughly where it's coming from.

Where's it coming from?

What it looks likeUsual fix
Rocker cover gasket (top of the engine)Oily around the top, running down the sides, sometimes a hot-oil smellA new rocker cover gasket
Sump plug or oil filterA drip low down, often soon after a serviceBack to whoever did the service
Sump gasketOil around the pan at the bottom of the engineResealing the sump
Crankshaft sealsOil at the front of the engine, or between engine and gearboxNew seals; the rear one means the gearbox comes out
Turbo or oil cooler linesWet around pipes and fittingsNew seals or lines

Why did it start leaking just after a service?

AA New Zealand says the usual suspects on a newer car are a faulty sump plug gasket or a leaking oil filter seal, both disturbed at an oil change. Take it back to the garage that did the work. Under the Consumer Guarantees Act a service has to be done with reasonable care and skill, and Consumer Protection's advice is to go back and give the mechanic the chance to put it right.

What to do this week

  1. Check the dipstick

    On flat ground with the engine cold, pull it, wipe it, dip it again and see where the level sits between the marks.

  2. Top up if it's low

    Use the oil grade in the owner's manual, a little at a time, and don't overfill.

  3. Measure the drip

    Cardboard overnight. A coin-sized spot and a dinner-plate patch are very different jobs.

  4. Send it with the evidence

    Photos of the cardboard and the dipstick, and how often you've had to top up, go in the note.

What the mechanic will check

They'll clean the area and trace the leak from the highest wet point down, because oil runs and gets blown back along the underside. Sometimes they add a dye to the oil and look again after a drive.

Ask whether the leak is near the exhaust or any rubber parts. Oil on a hot exhaust is a fire risk, and oil soaking into rubber bushes or belts shortens their life.

A WoF isn't a check of the oil: the MTA says lubricant levels and condition aren't part of it. Don't read a pass as a sign the leak can wait.

What you can do, and what to leave

You can

  • Check the oil level weekly while it's leaking, with the engine cold and the car level.
  • Top up with the grade the manual gives.
  • Put cardboard down to measure the drip.

Leave to the mechanic

  • Cleaning the engine and tracing the leak.
  • Gaskets and seals, from the rocker cover to the crankshaft.
  • Checking whether oil is reaching the exhaust or rubber parts.

What we'd do

We'd check the dipstick, put cardboard down for a night, and send a photo of both with the job. A slow seep from the top we'd have fixed at the next service; a fresh patch every morning, we'd want seen this week.

Questions people ask

Can I drive a car that's leaking oil?

Usually, for a while, as long as the level is kept up and the oil light stays off. Check the dipstick often, and stop straight away if the light comes on.

Will a stop-leak additive fix it?

It may slow a seep from old, hardened seals. It won't fix a split gasket or a loose sump plug, and the mechanic may want to see the leak before anything goes in.

Is a little oil leak normal on an old car?

Common, yes, as seals harden with age. AA New Zealand says a modern car shouldn't leak any oil at all, so on a newer car, any drip is worth a look.

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Where this information comes from

Rules do change. If one matters for your car, check it on NZTA's site or with Consumer Protection. How we write and check these pages.