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Valve cover gasket. The leak starts slowly and over time grows to the point that the oil will accumulate in the passenger rear corner and drip onto your exhaust cause the smell and smoke. It's a completely common issue with almost all E90's. Costs vary, I think I've seen most quotes in the $1000 USD range. It's a reasonable do-it-yourself project, but you've said you're not really savvy when it comes to cars.
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