Subaru Repair: cracked block on 99 Outback, legacy outback, head gasket


Question
I've just gotten the latest in a series of bad news about my 99 Legacy Outback - 2.5 L. 5spd with 83,000 miles.  Last May, it was front and rear leaking seals.  The rear one had leaked oil on the clutch, so that had to be replaced along with the seals, and since they (Subaru dealer) had the front timing belt cover off, they replaced the timing belt too.  $1700.
While they had it, they did the annual vehicle inspection and found some wear on the brake rotors - so they ground them ($100).  Three weeks later, the rotors are warped, so I go to a brake specialist and have them all replaced ($500).  Then on Columbus Day, I'm driving on a short trip and the engine overheats.  I find it is low on coolant, replace it with water until I can get to a town where I take it to a mechanic.  They check it out, top up the coolant, and say it is fine.  ($22) Two weeks later it overheats again.  (In both cases, overheating means temp guage goes all the way up - radiator is cold - looks like stuck thermostat).  This time I take it to a radiator specialist.  He finds a stuck thermostat, replaces that and the hoses ($221), then discovers evidence of a leaking head gasket.  
I park it until the dealer can do the work, then take it back to the dealer.  Today, they call me and tell me it is not a leaking head gasket, but a cracked block.  A new short block, installed, is going to be $3500.  After I scream and holler, the service manager gets the factory rep to pay part of this, and agrees that the service department will pick up 15%, leaving me only half of that to pay.  So I'm delighted that, out of $6000 in repairs over 5 months, I am only going to have to pay $4250.  
You're wondering what is the question?  
1.  In one of your responses to another person with a cracked block, you recommended rebuilding the heads at the same time.  Would you recommend that in this case.  That would bring the total repair bill for the five month period up pretty close to the current blue book value of the vehicle.  
2.  Assuming I get rid of this delightful vehicle soon, is there any reason to ever consider buying another Subaru?  I'm willing to be convinced.


Answer
Hello David,

    Believe it or not everything you described is very usual for that year and motor. The '99 2.5 phase 1 engines were good motors, but alot of problems with oil leaks. Not common for the thermostate though. Usually what happens with the low coolant is due to a bad radiator cap not holding pressure. The newer engines are a little better. The oil pumps still leak after time along with the cam seals. We are seeing alot of head gaskets on the '02 models. Usually though we are catching those while still in warranty. The '04 legacy's have a new throttle system called "fly by wire". The throttle is now controlled by the computer instead of a throttle cable. They are coming out with a new 50,000 mile bumber to bumber warranty in '05. Subaru is doing it's best to correct some of the previous problems. Their goal is to be a premium brand within 5 years, to compete with Lexus, and Volvo. I really can't convince you into another Subaru. But I can say, that unfortuantly you got stuck with a bummed car. Not every Subaru is that bad, but in any car line there are some bad apples out there, unfortuantly no one knows which ones they are. Stay away from white though.... (inside joke...all the cars that give us the most trouble seem to be white). One thing you could do is find a forum site online and talk to other Sub owners. See what they have to say. AS far as the heads go, I would leave it up to the tech to decide, he should know best, after checking them and making sure they are not warped, or cracked. I hope this helps.  

                       Thanks,
                         Frank