A car smelling like burning oil usually indicates an oil leak where oil drips onto hot engine parts like the exhaust manifold or catalytic converter, causing it to burn and emit that odor. Common causes include worn or cracked valve cover gaskets, loose oil filters, damaged seals, or recently spilled/overfilled oil. It could also mean internal engine oil burning due to worn piston rings or valve seals. Ignoring it can lead to engine damage or safety risks, so a prompt inspection and repair are recommended.