That appears to be the TRANSFER CASE: and it appears to be leaking. This could very well be an expensive problem. I'd walk away from this "deal" if I were you.


Thanks all! It turns out I'm dumb, it's transmission fluid leaking from a line going to the oil cooler and then splashing everywhere. Cheers!


At high speeds the oil pressure is higher so it may very well leak more than at lower speeds. Just because there is no visible "blue smoke" doesn't mean the oil is not being burned. The two usual causes are piston rings and/or valve guides. But due to your stated history of overheating, cylinder head warping or even engine block warping are ...

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