can the oil level sensor be the source of an oil leak? 2004 base model crossfire.

 

No. The sensor is internal, essentially in the oil pan.

So, where do you have oil leaking from, I mean, what can you see when you raise the hood and look around? The valve/breather covers are NOTORIOUS for oil leaks.

 

And, is it oil, or transmission oil?

 

THE DEALERSHIP swears its the oil level sensor and wants 732.00 bucks ..had the valve cover gaskets replaced 8 months ago...if that's the case do you know of any sensors less than 200.00 bucks ...thanks

 

Yes, the wire exits the oil pan and can leak there.
There is a write up and some pics here somewhere, I'll look for them.

 

Ok, after six years here - THAT is a new one.

 

Take the car to a dealer and you are going to have a bad day. PERIOD.

 

It happened on mine (04 also). $732.00 is crazy. Take it to a Benz independent shop.

 

The wire actually comes out above the pan, I looked for pictures in the library but I cannot find them.
How to replace the sensor, a post by JerryG
These are pics in my files and the hole for the sensor can be seen just above and to the left of the engine oil drain plug. The sensor is in place in the top pic. It is inserted from the inside and that is why the lower oil pan has to be removed. The lower picture is the SRT6 engine I saw on display at the Chrysler stand at Woodward one year.

 

Looks like there are 2 candidates for a leak :
1. the O ring on the sensor body.
2. the tube going to the sender.

edit! - As usual, I am all wrong.
The O ring is the most likely culprit as the part connected by the tube is INSIDE the crankcase.

 

the o-ring is $5.25
tube of Mercedes sealant for the oil pan reassembly is $24
don't forget oil and a new oil filter

 

Post #9 has been revised.