Is my Plymouth Neon's oil leak or overheating a blown head gasket?

Short answer: Very possibly. The early Neon's 2.0L engine has a well-known head gasket weak spot at the driver's side rear of the engine, where an oil passage runs very close to the edge. The most common first sign is an oil leak at the seam between the head and block near the brake fluid reservoir, often with a burning oil smell. Chrysler replaced the original gasket with a multi-layer steel (MLS) gasket in late 1998, and owners say that's the one to use.

Symptom: Oil seeping from the seam between the cylinder head and block at the rear, a burning oil smell, bubbles in the coolant bottle, or in worse cases overheating and coolant loss.

What to check first

1. Look at the back of the engine on the driver's side, near the brake fluid reservoir, for oil wetting the head-to-block seam. A valve cover gasket leak is higher up, at the top of the engine.
2. Check the coolant level and look for bubbles in the overflow bottle with the engine running.
3. Check the dipstick for foamy or milky oil.
4. Ask for a cooling system pressure test and a compression or leak-down test. These tell you if the gasket has failed between a cylinder and the coolant.
5. If you replace it, insist on the MLS (multi-layer steel) head gasket, not the cheaper composite type.

Likely causes

1. Failed original-style head gasket. The Neon FAQ quoted on Edmunds says nearly all failures happen at the driver's side rear, where an oil passage crosses within about a quarter inch of the edge. Chrysler revised the gasket twice before releasing the MLS gasket in production from September 1998.
2. Overheating that damaged the gasket or warped the head. Aluminum heads don't like overheating. Once a gasket blows inside, a cylinder can push coolant out and the engine can overheat quickly.

What it usually costs

In one 1999 Neon mailing list post, a 1995 Plymouth Neon owner at about 79,000 miles paid $100 plus tax after the dealer agreed the head gasket failure was a known problem. Another owner's repair was covered by an extended warranty. Those are 1990s goodwill deals and won't apply today, so get a quote for a head gasket job with an MLS gasket and a check of the head for flatness.

Is it safe to keep driving?

A small external oil seep can be watched for a short time if you keep the oil topped up. If it's overheating, losing coolant or the oil looks milky, stop driving. One owner was warned that a seeping gasket can break through to the cylinder next. Verify with a mechanic.

DIY or shop?

Shop, or a skilled DIYer. Neon owners on neons.org say a failure with the MLS gasket usually means something was wrong with surface prep or torque, so the head and block surfaces must be clean and flat.

Recalls, bulletins and complaints in plain words

• No recall covers Neon head gaskets.
• Chrysler bulletin 09-05-98 (November 1998): described the revised MLS head gasket. A bulletin is a repair guide for mechanics, not a free repair.
• Recall 96V026 (1996 Neon, separate issue): the engine wiring harness could short against the EGR tube. If your car is part of this recall, the dealer fixes it for free.
• NHTSA complaints: 374 keyword-matched complaints for Plymouth Neon 1995–1999 (of 1,199 unique complaints queried, NHTSA complaints API by model year, queried 2026-10-18; keywords: head gasket, headgasket, overheat, coolant, oil leak, antifreeze).

What owners report

• The Neon FAQ quoted in 1997 Dodge Neon head gasket on Edmunds explains that the SOHC and DOHC share the same block and both can fail, that the usual sign is an oil leak near the brake fluid reservoir, and that most failures don't mix oil and coolant.
• In neon leaking head gasket, a 1995 Plymouth Neon owner who smelled burning oil was sure it was a valve cover gasket. It turned out to be a seeping head gasket, fixed under an extended warranty.
• In Re: Bubbling Neon, a 1995 Plymouth Neon owner at about 79,000 miles had the temperature gauge peg on the way home. The dealer found a head gasket blown into the cylinder with no outside oil leak.
• On neons.org's forum, owners asked for the best head gasket to use and the advice was an OEM MLS gasket.

My take

My advice as a former lot tech: when I looked at a used Neon, the first thing I checked was the back of the head on the driver's side. Oil there on a car with no paperwork showing an MLS gasket meant I priced in a head gasket job.

Vehicle focus: 1995–1999 Plymouth Neon (same engine as the Dodge Neon) with the 2.0L SOHC or DOHC.

Safety / mechanic note

Overheating can warp the head and ruin the engine. Verify with a mechanic.