Five problems related to engine have been reported for the 1998 Subaru Outback. The most recently reported issues are listed below.
Took my Subaru to dealer for 60,000 mile check. He advised me that my head gasket was about to fail and needed replacement. He also informed me that failure of the head gasket in 1998 Outbacks was common. This repair is very costly (about $1500), and failing to make it could cause catastrophic damage to the engine.
Blown head gasket at 105,000 miles. My research indicates that this is a very common failure for this engine/model year. It cost me $3400 for a new short block/labor to effect repairs.
Blown head gasket on 1998 Subaru legacy Outback at ~70k, just out of warranty,. This problem occurred in 2003, but given the continuation of complaints from current Subaru owners experiencing this problem, it seems highly negligent of Subaru to deny responsibility for addressing this problem. This is a major problem on Subaru's dating from 1997 forward. Repair cost in excess of $2,500. This problem continues to arise on Subaru engines, yet the company has done nothing to reimburse owners for cost.
1998 Subaru Outback - blown head gasket, resulted in over heating. My mechanic estimates $2500 (assuming there is no other damage to the engine). We are also checking prices for used engines to possibly replace the existing engine. Mileage was approximately 129000 miles.
Blown head gasket. Seems to be a manufacturing problem, considering the number of blown head gaskets on Subaru 2. 5l engines. Contact Subaru mechanics to obtain unusual high numbers.