Technical Oil issue

[Goldnrust]

These are some photos of our engine. There's a cracked part, is that connected?

Or main question is? Is it SAFE to drive? or could this cause damage to the engine or anything else? We'll have to find a mechanic around but I wonder how many fiat 500 classic specialist there are in Portugal

The cracked part pictured is part of the air intake. It will have no impact your problem. Worst case the cracks allow a small amount of un-filtered air into the engine, which over time could cause wear. In reality its unlikely to cause a problem.

I think that video answers the question of where the oil is coming from! As @ZaphodB mentions, there is air pressure building up in the crank case, which is popping the dipstick out. There are two reasons for this; either the breather is blocked or there is excess combustion pressure making it's way into the engine.

Try removing the breather tube, the green translucent tube on top of the valve cover. With the engine running, and revved up, you should feel a stream of air coming out of the valve cover? Does the dip stick still pop out?

 

[the hobbler]

The cracked part pictured is part of the air intake. It will have no impact your problem. Worst case the cracks allow a small amount of un-filtered air into the engine, which over time could cause wear. In reality its unlikely to cause a problem.

I think that video answers the question of where the oil is coming from! As @ZaphodB mentions, there is air pressure building up in the crank case, which is popping the dipstick out. There are two reasons for this; either the breather is blocked or there is excess combustion pressure making it's way into the engine.

Try removing the breather tube, the green translucent tube on top of the valve cover. With the engine running, and revved up, you should feel a stream of air coming out of the valve cover? Does the dip stick still pop out?

The fact that the engine has a dynamo and the outlet for the heater-air into the car seems to be coming out of the BACK of the thermostat housing, would leave me to believe that it IS a 500 engine. A safety comment---PLEASE REMOVE THAT FUEL FILTER OVER THE DYNAMO. fi that should leak, petrol will drip on to the dynamo--a good way to start a fire! You already have 3 fuel filters in the system--you do NOT need a 4th.

 

[FabAni]

Hello guys!!

Sorry just replying now, it's been busy lately!

Thank you all for your help and advice. We took her to a mechanic and it was a simple job luckily! So the dipstick popping up while revving is because the seal around the dipstick was worned out so the dipstick was just hanging quite lose on there so any minimum air pressure would have push it up! They changed the seal so now it fits nicely on there and it has never come out!

Also for the oil light, the cable for the sensor popped off!

All is working now

 

[Goldnrust]

Excellent news, glad to hear you're all sorted an it was an easy fix!

 

[FR85]

Great you got sorted! Quick and easy fixes are great, I'm happy I moved you away from the coil being the source of the oil as it could have been a rather smelly disaster, oil on a hot exhaust smells rotten! A rocker cover gasket went on mine and it went just at the back right corner and hit the exhaust on the no1 cylinder and the smell was horrific but it was the smell that let me to the oil loss thankfully.

As above I think you have a 499 engine as the 126 650's normally had plastic piping into the carb, not aluminium and also they have a baffle from the airbox over to the carb. Also as pointed out, the dynamo, dipstick also looked quite original

As mentioned lose the fuel filter from on top of the dynamo, fire risk. If you feel the need to have one, install it on the outlet of the tank under the bonnet but you have a filter in the tank, the pump and the carb.

 

[Mike1alike]

We took her to a mechanic and it was a simple job luckily! So the dipstick popping up while revving is because the seal around the dipstick was worned out so the dipstick was just hanging quite lose on there so any minimum air pressure would have push it up! They changed the seal so now it fits nicely on there and it has never come out!

That sounds nice, but I dare to say that isn't the fix, unfortunately for you! It just stops the dipstick from popping out.
The dipstick is not light as a feather, it shouldn't pop up like that, even without a seal. There is way too much pressure in the crankshaft area. First thing (easy) you should check the breather pipe, but I don't think the problem lays there.
I think you're loosing compression towards lubrication system. And in the same time, on the other way, oil gets inside combustion chamber/chambers and it's consumed. There are two possible things: either the head gasket is blown and permits communication between combustion chamber and oil channel, either worn out piston rings. So you should have compression tested. If it's low on one or two cylinders, it's the head gasket. That's the easiest of the two. If compression is low on all cylinders, it's the piston rings and you should replace them if so.

 

[FIATinCA]

It always uses quite a lot of oil as it already has an oil leak underneath which I think is typical of these 500s...

It definitely shouldn't leak oil. People say it's normal for old VW's and Porsche's to leak oil too, "if it's leaking, great you have oil". That's been passed around so long that people just drive around with oil leaks now and call it good.