So I have been helping my girlfriendā€™s mom by volunteering my time to look at used cars and give them a thumbs up or down. She is on a tight budget, so she has been looking for cheap vehicles

Today I came across a pretty decent looking 2001 Volvo V70 XC with a turbo engine and 155k on the odometer. The only problem with this car is that there is a bunch of oil splattered around where the turbo piping enters the intercooler. I thought that this may indicate a blown turbo, so I had the seller pull off a clamp where the rubber hose meets the hard pipe going across the top of the engine. Sure enough there was some oil inside. The seller is asking $2000.

I will admit that my experience with turbo engines is limited, I am fully aware of how they work, but less so on the intricacies of their maintenance.

My questions are:

Does oil in the intake piping indicate a blown turbo?

If the turbo is bad, how difficult is it to change on this vehicle?

Are junkyard turbos any good?

If I do get a turbo from a junkyard, what are the crucial things to check for?