I went to dealership this morning for an oil change and noticed written on the bottom was "moisture in the engine". I'm not sure what that means, appreciate any advice you can share.
I have a 2004 chrysler coupe with 31K miles and changed the oil about 9 months ago -- car was purchased 2 years ago with 23k on it Thank you.

 

Every car my mother drove had condensation in it. It sounds like the guys doing your oil changes noticed the same thing (white sludge under the oil filler cap or on the dipstick is an indication of excessive water content in the oil.) The guy who dad got to do oil changes and, well, all work on the cars said that it was a result of short trips where the engine does not spend enough time HOT and running, so as to vent the condensation thru the PCV system.

I found a similar diagnosis on the VW forums:

Q My daughter has a 1999 Volkswagen Jetta with a 2.0-liter engine and 108,000 miles. When I remove the oil filler cap, I notice moisture buildup inside the engine -- a white sludge around the fill cap area. I can usually wipe out most of the moisture with a clean rag. I have been changing the oil on a more regular basis every 2,000 to 3,000 miles in an attempt to reduce the moisture. In the summer, the buildup is less noticeable than in winter. The coolant maintains the proper level, and oil consumption is about two-thirds of a quart per 2,500 miles. Any thoughts on what might be causing the moisture buildup?

A The low mileage would seem to indicate infrequent use or short trips -- both of which can promote condensation inside an engine. Other potential causes are low engine operating temperature, a blocked PCV (positive crankcase ventilation) system or a failed temperature regulator thermal vacuum valve, which is designed to preheat incoming induction air.
As the engine warms up, moisture in the air inside the crankcase condenses into liquid form on the cold internal engine parts and is carried throughout the engine by the motor oil. If the engine does not or is not allowed to reach and maintain full operating temperature for a reasonable period of time, it never evaporates, and it turns into a whitish goop on the oil fill cap, dipstick and inside of the valve cover.
Changing oil more frequently helps remove this buildup, but the best answer is to make sure the thermostat is bringing the coolant up to full operating temperature and driving it at that temperature for at least 30 minutes every few days.

Since my mom slipped into eternity in 1996, I don't think we can blame this one on her! When you DO drive this car, make it longer trips where the engine spends more time at full operating temperature. My gut tells me to tell you to take it out on the interstate and get it in high gear and run 60-70mph for 1/2 hour or so - maybe take the wife to dinner in the next city (25 miles away) once a twice a month.

 

Thanks Pizzaguy, puts me more at ease. I will take you advice and dry it for longer trip...I drive short trips most of the time. Thanks for posting the info above. Hope you are feeling better too.

 

Thanks and you are welcome, if this does not clear it up, it may be time to take a closer look but I'm pretty confident that we have our answer.