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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.

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One very real cause of 'oil' in the cooling system is that the oil cooler for your transmission is part of the cooling system radiator. A small oil-cooler oil leak into the radiator may very well be your problem. Is your trans fluid going down?

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