My son just (today) bought a 1992 BMW convertible, 121,000 miles, from a shade-tree dealer. It looks good, but I am afraid we have really messed up. The very first day after we backed it in the driveway, it left an arc, and then a small pool, of a very black oily liquid. I looked at the oil and it was golden, not the same color at all. Checked the brake fluid which seemed pretty clear, and then --- dark ATF. This could be it. But the fluid level seems to be really full, far too full for the amount of liquid that has dripped into my driveway.

Obviously I need a mechanic but can I even drive it there without risk of damage? I've been cruising around the 'hood, and it still sounds find. (Guess I should stop that.) We are so sad that we have been taken in by this pretty face. Is there any possiblity of good news on Monday when I take this car?

Check to see where the leak is originating. Mine had a leak from under the reservoir because over time the rubber hoses shrink and the clamp becomes loose, then the ATF would dribble down the line and drip off the banjo nut at the power steering pump. Change the clamps if the leak is there. Not a big fix just messy. The access for the job is easier if you remove the reservoir with the hoses attached.

dark_islight

I think 'dark islight' is onto something but I think your problem is the steering rack...the arc of fluid when you backed into the driveway. turning the wheels contracts one rack boot and expands the other and when full of fluid from leaking seals from a worn rack and bushings, the fluid is pushed out of one boot until the wheels are straightened and the pressure in the boots balances again [sort of]......I hope I'm wrong as replacement is the only real cure.
I highly recommend a ZF reman. unit only [if that's
the problem] but hopefully it's something cheaper.

Park your car in a clean spot on your drive way. Not the same spot as the puddle was. Have the car running and while you turn the wheel back and forth make your son lay on the ground and see if anything is driping/spraying out. But a warning, dont lay under the car with your eyes open because when you turn the wheel the pressure pushing out could spray in your sons eyes causing some bad stuff. Turn the wheel a few times first and let him look at it suqatting down from a distance. Its not going to spray 10ft or anything but on one my my cars it did spray about 3ft from the hole and about 2ft away from the car, so ther eis some major pressure which could cause blindness. But after that and figuing out a good spot to lay turn the wheel and see if you can find otu exacatly where the fluid is comming from. If you cant because of a plastic undergaurd then you would have to take that off and I dotn want to go into that much detail yet.

And if you find out that it is ATF fluid then it is still save to drive your car around but if you run out or get low (your be able to tell by the whinning noise when you turn the wheel. Its the pump not pumping any fluid) Then the steering will become pretty damn hard and not be as easy as it was to turn the wheel. If that happens pull over and put some more AFT into your car. I suggest going out to pep boys or any auto store and buying a quart of fluid. Make sure you get mercon-dextron III. I always keep a quart of it in my car that had the problem. I keep 2 gallons of anti freeze in my one car that had a over heating problem, and I keep 4 quarts of oil in my car that had the oil problem. Im always perpaired.