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2005 WRX, 36,xxx miles. Only mods are catback exhaust, drop in filter, lowering springs.

Bought car a few weeks ago from used dealer, had some issues that were being worked on supposedly and they gave me the car back for a day or two. Upon starting it a big puff of blueish white smoke came out of the exhaust and hung there followed by more smoke. Popped the hood and while idling took off the oil filler cap and dipstick and the same smoke poured out of both. Car still drives somewhat, but barely. No power whatsoever and lots of bucking/bad hesitation but can still here turbo. CEL is on and last i checked before the dealer gave it back it was cyl 2 & 4 misfire on and off. Car is officially back at the dealer till however long till its fixed and they gave me an Audi a4 2.8 as a rental.

Just looking for some insight on what the issue at hand is. could use some expertise :) it is going to be fixed...just have a feeling the silly stealership will take forever :(

thanks guys
 

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Blueish white smoke means oil burning. Check the junction between the turbo and downpipe to see if there's any sign it was changed. It should be obvious, on a used car with this many miles, the joint should almost look fused together (it isn't really, just looks that way). If the bolts look like they've ever seen a wrench, then the car may have been modded and returned to stock, and who knows what the original owner did.

Is the oil level ok? Taking off the caps while it's running (or not) means very little (depending). What is the real oil level?

If the car only drives "barely," with those faults, those are serious problems. Were there any problems leading up to this? The drop-in filter can cause problems with oil fouling the MAF. I'd ask the dealer to replace that as a good place to start. You need to eliminate possible issues and that's a key place to start. They can also clean the MAF rather easily. MAF faults can cause bucking but usually it's not bucking just a loss of power at about 4500 rpm but it'll work fine until then.
 
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