I noticed some oil on my garage floor where I park my 1997 240 so I put the car up on stands to take a look. I dont know how, but the oil seems to be coming from the water pump. The car does NOT smoke or overheat. I doubt the oil is coming the coolent, but I could be wrong. (I REALLY hope not thoough!) Does anyone have any idea what is going on or where the oil is coming from?

 

I'd look around the timing chain covers and the valve cover area...

 

Check the front seal. (behind the crankshaft pully)

 

^^^

Uhhmm hmm if thats starting to leak, it will fling ( its a word i think ) oil everywhere

 

There is no oil coming from the block or timing chain. After looking at it some more, I'm starting to think it is just runny grease. My tie rod ends have the same oily liquid come off of them (they are new) so thats why I'm thinking grease.