Faults:

Rear struts had to be replaced at 120,000 miles.

CV boots eventually tore, and had to be replaced at around 150,000 miles for the right side, and 189,000 for the left side.

Factory installed car alarm. At about 130,000 miles it started to go berserk when others hit their key fobs. So I solved that by cutting the wire to the alarm sound maker. Lights still flash.

General Comments:

Except for old age problems on things like struts and CV boots, this car has had zero problems! I always get the oil, transmission fluid and brake fluid changed when I'm supposed to. Spark plugs, fuel filter, air filter, that kind of stuff. It has cost me almost nothing to maintain this car!

I have had no transmission problems or head gasket problems.

Faults:

Weird drop in rpm and speed gauge, but still able to drive fine. Took it to repair shop; didn't find a thing.

General Comments:

Wasn't looking for a fast car or a great mpg. I wanted a good all weather car that I can do whatever I want and go anywhere. It handles OK, rides fine, but isn't quick by a long shot. So what. AWD is great for winters... no major issues yet.

Faults:

I am the owner of a 98 Subaru Outback. I too have experienced head gasket problems... My Outback has 196,000 miles. I bought a repair manual and fixed it myself... stop whining when your Subaru blows a head gasket at 150000, and learn how to fix it!!!

Faults:

Head gasket blew at 149,000 miles (seems to be a typical problem for the late 90s 2.5L).

Cam seals failed at 140,000 miles (also seems to be a common issue for these motors).

The point in the exhaust where the cat connects to the cat back exhaust, rusted out at 146,000 miles.

General Comments:

This car is the paramount of practicality with folding seats, AWD, windshield wiper deicer, heated mirrors, water resistant interior, high ground clearance, and very efficient front and rear defrosting.

The 1998 Outback has relatively slow acceleration that is far from exciting.

The stiffer suspension of this vehicle, coupled with the AWD, gives you the ability to turn tightly, even at relatively high speeds, despite the high and narrow shape of the early Outbacks.

Snow is no problem. My driving experience is nearly unchanged up until about 3 or 4 inches of snow. Even with 6 inches on the ground, the car performs beautifully.

The engine is pretty quite, but noise dampening in the cabin is a bit less than I have experienced in larger cars, such as a 2002 Intrepid or a 2000 Ford Taurus. I have cupped tires, which adds to the noise.

Although the boxer engine has many advantages (smooth running, low center of gravity, reduced torque steering, etc), the configuration puts the headers up against the sides of the engine compartment, making ordinarily simple fixes, such as replacing spark plugs, much more difficult. Replacing the plugs has been quoted at $300 (They ended up being replaced during my head gasket fix instead).

Also, the AWD kills the mileage. When I calculate the mpg on a tank full of gas, I can end up with anything between 18 and 25 mpg. I'm guessing this translates into roughly what Subaru advertises: 20 city/ 27 highway.

Faults:

Probably head gasket... I bought it this way.

General Comments:

Nice clean car, all equipment works. Just can't get around the block without it blowing all the water out the overflow bottle. Subaru should step up to the plate on this one, like Toyota did years back with the V-6 engines/ trucks... heads and head gaskets.