Which parts fail
Components named in complaints (engine, cooling system, oil leaks, timing chain, exhaust).
Mileage when the problem started
Owner reports
Selected complaints filed with NHTSA by 1998 Subaru Legacy owners, lightly cleaned up (personal details are redacted by NHTSA).
My 98 Subaru Legacy outback 2.5 liter, 144K miles was sporadically overheating while driving on the highway through a snow/rain storm. The temperature gauge would go up, and the cabin heater would start producing cool air. I pulled over and let it cool down, filled the radiator back up with water (it had overflowed) and drove slowly home. When I took it to the mechanic, he suggested when hearing the symptoms that it was a blown head gasket, and that this Subaru engine was notorious for this. He even suggested a class action suit. After he checked it out, it was indeed a blown head gasket. After some web research on car forums, I found several other people with exactly the same problem with this particular engine.
Vehicle requires replacement of head gaskets, as part of the engine coolant system. Original service complaint was the " check engine light came on". After three days at dealer service, it was determined that the head gaskets needed replacement for the cost of $ 2,700.00. Because the engine has to be removed to access the gaskets. Labor will involve 3 days. The dealer has admitted that this is a design problem with the Subaru and models from 1999 will be covered. I feel the cost is excessive because of a design defect. I am will to pay but not $ 2,700.00. I was expecting $ 400-$500 dollars. For a $ 20.00 dollar seal! While not a safety defect; it certainly is a design defect!
1 x overheated on a hot day, heading up a hill. Noticed high temp and turned on heater, waited for car to cool, added h2o. 2 months later, driving on a hot day with ac on, sudden clicking, check engine light, lost power, smoke, stopped. Towed to garage that specializes in Subaru and they found hole in head gasket. Repairs to cost $3K and this is something they see 2x a week with Subaru vehicles. Found a web site where dozens of people complain of the same issue over the years. Subaru apparently has a recall on 1999-2002 vehicles, but not others with the same issue. Subaru should be paying for the parts on this widespread and known issue!
Dealer wrote: "noise from valve train...advised owner these are solid lifters and are noisy when cold, also characteristic of this engine is 'cam walk' which also will be noisy for a few minutes when cold then goes away." that wa at 48.5 k miles, now at 53000 miles, noise is much louder when cold, and still perceptable when warm. Bought car used form dealer--resale value is now much lower due to noise. Their explanation is nonsensical. Obviously dubaru does not want to deal with this issue--I wrote to Subaru USA and they refered me back to dealer.
At the beginning of February, 2003, blown engine in a 1998 Subaru Legacy 2.5 gt. Dealer stated that the problem was due to cold weather in the northeast, and that there were 4 other Subaru's with blown engines in his lot awaiting repair. I had the engine replaced with a 1999 Subaru at a trusted mechanic's (at a cost of $4000), and today the alternator on this 1999 engine died ( this had been a recall on the '98 Subaru's).
It seems after 5 minutes of investigation that there is thousands of 1997 to 2002 Subaru owners who are have the problem with over heating and head gasket replacement. Subaru refuses to acknowledge an issue or design flaw and is making the customer bare the cost of repairing a faulty head gasket problem. Even replacing the head gasket does not insure that the problem will be dealt with and no further trouble will be had.
Car overheated, took to dealership. Called next day and informed the head gasket was blown. After discussing, they said they had to replace both head gaskets. Knowing about cars, this seemed strange to me that both were blown at same time - it was at this time that dealership pointed out to me that Subaru is having problems with head gaskets and that this is not an ususual problem. Replacement cost was $2200.
Asked dealership to look at knocking noise in engine 2 years ago, no problem identified. Asked another automobile repair facility about the noise and they claim Subaru had a history of piston slap that will eventually get worse resulting in burning oil and engine damage.
While driving 60 MPH vehicle stalled. Consumer was unable to restart vehicle. It was towed to a garage for inspection, and mechanic determined that the head gasket needed to be replaced due to a blow out. Updated 02/24/06
Vehicle was leaking ant freeze, which was splashing all over the engine compartment. This resulted in the temperature gauge reading hot. This occurred because the head gasket blew out, and was replaced.
Related recalls
Engine and engine cooling › Engine
Vehicle description: passenger vehicles, also service parts supplied to Subaru dealers are involved (lot numbers f01 j21d2, f01 j30d2, f02 j09d1, f02 j09d2, and f02 j20d1). The purolator oil filter cans used on these vehicles can fracture causing a vaporized oil spray and subsequent oil leak.
Remedy: Dealers will inspect and replace these engine oil filters.
Engine complaints in other Legacy years
Frequently asked questions
How common are engine problems on the 1998 Subaru Legacy?
NHTSA has 30 complaints about the engine & cooling of the 1998 Subaru Legacy, 26% of the model year's 114 complaints. The component named most often is engine (15 mentions).
Is there a recall for 1998 Subaru Legacy engine problems?
Yes — NHTSA recall 98V-127 (engine, Jun 8, 1998). Recall repairs are free at authorized dealers.
At what mileage do 1998 Subaru Legacy engine problems start?
Half of the complaints with a recorded mileage happened before about 105,000 miles.
Is it dangerous?
Owners linked 0 crashes, 1 fire and 0 injuries to engine & cooling problems on this model year. If you notice symptoms, have the car checked before driving further.
Source: U.S. National Highway Traffic Safety Administration (NHTSA) — owner complaints through October 20, 2026, recalls and defect investigations; fuel economy from the EPA. Complaints are unverified reports and are not proof of a defect. How we rate model years.