The oil didn't smell bad per say. It just had a very strong 'oily' smell if that makes sense. It is very doubtful that the unit has seen much use because of the condition of the sprocket and shifter - which are the originals. I just don't think that the oil has ever been changed since new or, if it has, it probably hasn't been done as frequently as it should. I'm building a wheel for it this Saturday and taking it out for a test ride on Sunday. It'll stay on my Nomad for a couple of months, which is used daily, until I get time to build up the Sherpa. Hopefully during that time, if there are any problems, they'll manifest but I'm sure everything will be fine.