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Hello everyone,

Just recently bought the BMW E46 2.2 petrol (170hp) from 2004. Atm got 97k miles at the clock. First day after I brought it for the diagnostics, there was no errors at the computer, but the mechanic discovered small oil leak from the top of engine which is causing that it sits down on cables at the left side of engine. After too much rev it smells like something is burning. He told me to replace head gasket for engine. Also I did notice that every time after starting the engine (3 seconds after start) got yellow sign of oil at the dashboard, it does vanish after 5 seconds as well. Another mechanic told me that might be dirty oil filter or change of oil. Well both been replaced at January (at least MOT invoice is written off for that, not sure is that actually true). After an roughly hour of driving every time I do hear some clacking sound from engine bay probably at the ?rear/right bottom? It is hard to locate the origin of sound tbh.

Do anybody got any idea what might be causing these problems? Is that connected somehow or two different problems to solve?

Already ordered 5W40 Castrol oil, K&N oil filter, genuine BMW coolant, head gasket, spark plugs and belts. Awaiting for jack stands to replace everything at once.

Should I do anything else except to replace them? I did read that might be caused by Vanos system which is located nearby the oil leak location?
 
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