Volkswagen Repair: 1996 VW Jetta GLS oil light warning/leak, vw jetta, mechanic friend

Question
1996 VW Jetta GLS, 158K

Going into the shop at the end of the month.
I have an oil leak as I keep having to add two quarts about every three days.  Added two quarts yesterday and my oil warning light and alarm are going off today. I am afraid to drive it over to the shop now with because that alarm just sounds like "Pull over immediately, the car is about to explode." It looks like there is a leak at the back left side of the block.  (Sorry, don't know technical terms of these things)

I have had a coolant leak as well.  I just add antifreeze about every three weeks when my temp light starts to blink.

Oh and my check engine light has been on for about three years (doens't blink) but no one can figure out what the code means so everyone tells me it's ok.  I just can't pass inspection with it so my "mechanic" friend just does the little diagnostic and it goes off long enough for me to run through the inspection. Then it comes on about 100 miles later.

I love my Jetta...bought her new and she has not given me much trouble. I just have regular tune ups, oil changes, and brakes.

I appreciate any insight.

Thanks!
Amanda  

Answer
Amanda, thank you for your question.  This sounds like one of the oil seals are damaged and leaking.  You could also have a Head Gasket that is blown (which will cause both problems).  With 158,000 miles, do not be surprise if your machine tells you the engine needs to be overhauled (usually done from 125,000 to as high as 200,000 miles).  Some engine codes can only be read by the dealer, which also means the part is also a “Dealer Item Only”.  
Hope that helps