Why would a car smell like burning oil?

- A week ago I had the same problem. I took it to two places before they discovered the problem: I had a plastic bag melting on my muffler. I had picked it up while driving and it was slowly burning over the last week. Something to mention if you take the car in to get looked at. well it seems like it could be a few things 1. leaking valve cover gasket 2. oil pan is damaged 3. head gasket. i am gonna go with valve cover gasket for sure I just had that same problem Plugged or damaged pcv valve; Loose or damaged oil drain plug; Worn or broken piston rings. u have an oil leak. the leaking oil is blowing or running onto hot parts in vehicle whether it be the exhaust manifold(leaking valve cover gasket)or the exhaust pie, leaks from anywhere lower than exhaust manifold will run down and blow back and usually burn on lower parts of exhaust system