Speed sensor and solenoid sensor on automatic transmission became faulty, causing shift shocks and irregular shifting, which won't allow transferring into 4th gear. However once the car warms up after couple of miles, restarting the engine clears the problem right away. Cleaning up the sensors may resolve the problem, but ultimately these parts need to be replaced with new ones.
Unfortunately the location of these parts are not accessible for average Do It Yourselfers; it must be taken to a professional, as with many of the repairs for Subarus.
I bought this car used with 113K miles on it, and it was my first Subaru. I had a vague idea about Subaru as a solid and reliable AWD car, but never knew why some people were thrilled about it.
But now that I am a proud owner of Subaru, you can say I am a big fan of this car, it drives amazingly strong and the handling feels very sturdy. It's a joy to drive it daily.
Overall as a 9 year old car, it feels as good as many newer cars, if not better. Definitely way better than the Honda's and Toyota's of similar class.
I would definitely keep this car and looking forward to buying another Subaru in the near future.
One negative thing about the car, is for subcompact car, the gas mileage is not really good. Some will say it's about 30 mpg, but I only get around 21 to 23 mpg in summer, and maybe 24 to 26 in winter, and I have done everything possible to improve gas mileage, like changing to K&N filter, changing fuel, oil, transmission filter, spark plug with narrower gap and change all fluids/oils.
Because the car is running on all wheels full time, and it's so much fun to drive, this car is not great if you want a gas miser. For me I am willing to pay a little more on gas for a little enjoyment in return.