Newbie has a question
 

Just bought a 87 MKiii and also new to treads, its runs great but just has a small oil leak. i checked where the oil is coming form and its coming from the transmission? now i know its not transmission fluid because its very thin. i removed the clutch cover and oil was drip out. anyone know how or why oil would be in the transmission?

Oh it could be anything from the valve cover gasket to a cracked head. My guy had a "mystery" leak, turned out to be a cracked head. Very close to the valve cover gasket.

But how would the oil get in the transmission housing ?

Mine was dripping from the tranny too. Changed out the rear main gaskets, the front gaskets, the valve cover gasket, etc. Then they used a dye and with the valve cover off discovered the leak. The 7mge and 7mgte have a problem with their head gaskets. After an overhaul and a rebuilt head, mine does not leak at all.

Not sure how mine found its way there but it did.

Look down behide the motor and look at the housing if it's all wet with oil then maybe valve covers or cracked head. If not then maybe it's the rear main.

agreed. i think its the rear main seal. check the rear of the motor, see if its coated with oil. if so, head gasket prolly. if just inside the bellhousing, rear main. as stated above :bigthumb:

rear main seal. check above the bell housing too.

My vote is for rear main seal. I wouldn't doubt if it needed a head gasket as well like mine did.