Mechanic tells me I have major oil leak Options

[ritch1]

Hi, new to the forum, only just got a celica, its a 1994 GT, has done 88K miles

I took it to my garage for a service + check over this week and my mechanic informed me i have a major oil leek, said they they didnt have time to find out where it was coming from so i need to book it back in. he did say that it could be either coming from the gear box or engine as that whole area had oil around it.

im a bit worried to be honest, if it can be fixed i dont mind paying for it, but will it end there, and will they even find the leak. funny thing is i havent noticed any leaking on the ground but i smelled burning oil though.

the engine sounds fine and the car feels fine as well, really pleased with it appart from this leak, i had a feeling the seller was hiding something but i chose to trust on this occassion, probably could have knocked the price off a bit!

is a leak like that a bad sign that engine is on its way out, or would you say its a pretty standard thing with a celica of that age?

sorry if this is a well discussed topic, just looked for some advice on my specific situation

thanks for any pointers