I have a 1995 Camry (125K in miles) with a 4 cylinder engine. For the past year and half, I have been leaking oil (1 quart every 3000 miles). Last year, my mechanic has put dye in the oil to check for leaks, replaced the valve cover gasket, replaced the distributor O- ring, checked the oil sensor for leaks and tighten up the bolts on the oil pan. At that point, he gave up and said he couldn't find the leak.
Today a year later, he changed the oil and said the head gasket was leaking oil and needs replacing. He did not mention any signs of coolant in the oil or any signs of oil in the coolant.
My questions are:
1) What is the best way to determine that the head gasket is leaking? I believe that my mechanic is honest but the track record on this problem concerns me. I have spent a fair amount of money on the prior fixes with little improvement. I am trying to avoid spending $700 and still have my original problem. I will get a second opinion but would like some guidance on how to trouble shoot this problem.2) Since this appears to be an external leak, is this something I can live with as long as I monitor the oil light?