One problem related to automatic transmission has been reported for the 1996 Subaru Legacy. The most recently reported issues are listed below.
1996 Subaru Legacy - auto trans. Car binds on slow turns. Subaru tech. States that vehicle needs about $1000 in repair to the awd system, this includes transfer clutches, housing, etc. Only 44,000 miles on vehicle! tech stated that he has never seen this problem on a vehicle with such low mileage. Called Subaru of America and they stated that they will not assist in repairs. I purchasd the vehicle to have awd and this is the system that is failing! since awd is the benchmark of Subaru, I would have thought they would stand behind their product. Please advise.