I have a 99 Pontiac Grand Am which has done 160,000 km.
Recently, I found oil in my coolant.
Will this damage my car? What could be the reason behind this?
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No, the car is not garbage. But it does need a head gasket replaced, or possibly has a cracked head. In worst case, the engine block is damaged, and the engine will need replaced.
Repairing the problem (hopefully only the gasket) and flushing and re-filling the coolant and oil should be all that's needed.