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Q: Flashing oil light on 1998 Chrysler Sebring

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After driving the car for 15 minutes the rpms will drop to about 500 at a stoplight and the oil light will flash on and off. If I put the car in neutral the light will go off (rpms up to about 700). Sending unit issue? Oil pump issue? Idle issue?
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I would change the engine oil and filter and replace the oil pressure switch (it's cheap). If that does not fix the problem you need to remove the oil pressure switch and verify the actual oil pressure using a mechanical oil pressure gauge. Do you hear a rattle when you start the engine up form cold like a car that may have bad crankshaft bearings.
I just had the oil changed a week ago and there was no noise upon starting (no clattering lifters/cylinders). I took it in to the shop that does my oil changes and had him do an analysis; he called me later with this - Needs a major tune-up, fuel injection and induction service and he has to pull off the top of the engine to do it so a new gasket or two is involved. Bottom line?..... about $700 worth. Did I mention that it's a '98 Chysler Sebring with about 106,000 miles? I hate that car.
Oil Pressure sending units and switches were common failures on there vehicles. As Patrick mentioned, replace the sending unit/switch. Also inspect the connector terminals for secure connections.
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