The lip seals are very picky about alignment and the condition of the surface they are sealing against. The felt seals are much less fussy in both of these aspects. Yes felt seals do get compacted and harden up a bit over time as they get contaminated but new ones freshly oiled and regular oil changes will keep the oil from leaking out for another 100k, just as the old ones did. I would hazard a guess that more people who change to lip seals on an older engine suffer from further leaks than those who stick with felt ones. Less expensive too.
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