Rear Main Seal Leak
Symptoms
Oil drips from the junction of the engine and gearbox. Oil may be visible on the underside of the bellhousing.
Cause
The rear main seal on the 304 is a two-piece rope-type seal (early) or one-piece lip seal (later) that hardens with age. The one-piece seal is far more reliable. Many 304s have been retrofitted with the one-piece seal during rebuilds.
Fix
Replace the rear main seal.
This requires removing the gearbox or engine.
Budget $500-1,000 for the job at a workshop.
If the engine is out for other reasons, the seal itself is $20-40.
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