I've got what is developing into a pretty bad oil leak in my '88 245. It seems to be coming out of the area near where the top of the timing belt loops around. It is dripping directly down onto the alternator, and now makes a little puddle everywhere I go! How can I fix this? When I got the car I had to replace the alternator almost right away, maybe because of all the oil all over the place?
Likely the front cam seal is leaking.
Have you replaced the flame trap lately? When mine plugged up, crank case pressure pushed the front seal out along with 3 quarts of oil, in about 2 miles.
I agree, the cam seal is the likely culprit.
Here is a link to a menu of different threads which are worth looking at; though it is for 740's, it is useful for 240's as well.
I find it is easiest to remove the cam to replace the seal; very easy if you follow directions and use a torque wrench.
There's two likely culprits. One is the camshaft seal, and the other is the valve cover gasket. Neither of which are particularly difficult to replace, though to get to the camshaft seal you have to remove the timing belt.
As others have said, check the flame trap, it's by far the most common cause of leaky seals on Volvo motor. The hose from that to the airbox can clog up with crust too, particularly if oil changes have not always been followed on time.
oops ... the missing link:
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