Smoke from steering column with complete loss of power. Help

I am looking at buying a 91 240 coupe but the guy has told me the gaskets are leaking oil (ka24de). Next thing you know the guy says he started it and it started to smoke lightly from the steering column followed by a complete loss of power. I was under the impression that the problem had to do with the engine and the fact that it was leaking oil and it did that because it is hot out. But I was wondering if it could be something else or if a simple engine swap would solve the problem. Any advice or help would be appreciated. Thanks.

my advice…dont buy the car…or engine swap it

obviously if it is smoking from the inside of the firewall it is not too much related to the engine hopefully. My guess would be something to do with a remote starter installed on the ignition harness that is incorrect or that has some crossed wires.