I prefer the 3 liter!

Author's Rating:

Pros: Nice car. Very reliable. Good to have at least one wagon in the family, too.

Cons: Pricey with the 3 liter.

The Bottom Line: 
This a nice family wagon. My pick over the A4 and Passat. For extra luxury I recommend the 3.0 liter H6.

Author's Review
The wife owned a 1995 Legacy Wagon for 13 years. The wagon was functional for mountain bikes at first, then trips to the hardware store (it had room for 12 foot trees and lumber!), and then for kids seats.  Over that time, it required one minor unscheduled repair (the battery cable).

When it was time to look for a new car, the wife was a big fan of the Subaru (she couldn't overlook the reliability we had). I wanted a safe family car that was more luxurious than the Legacy (more powerful, quieter, more comfortable, and with gadgets), but equally reliable. Having lived in Colorado and Canada in the past 9 years, I also wanted AWD (I've found AWD is not as important as tires in handling in the snow and rain, but it helps some). I also wanted something that was luxurious enough for me to ENJOY driving.

Interestingly, I noticed good number of 2 Subaru families in the last 10 years. I think that is one heck of a good sign. I also seem to observe a lot of Outbacks at National Parks and among professors. I don't know if that's a good thing or a bad thing, just seems to be a demographic trend...

I read epinions reviews. I found several good cars. But I noticed the number of people who felt the Outback to be underpowered. I felt the same way about the Legacy we owned.

I tried a few cars -- Nissan Maxima and Altima [the Nissan salesman was a big Subaru fan], a Jeep Cherokee, Mercedes M class, and maybe a dozen rental cars in the last couple of years. I read Epinions. I tried the Legacy and basic Outbacks at the dealer, but they were still too bare bones. I couldn't let go of the positive experience I had with the Legacy, but I wasn't going to settle for another one of those. Then I visited the website. It described a 3.0 liter V6 with 212 HP, leather, all the bells and whistles. My dealer didn't have one in stock. So I waited.

Here's what I found:

Engine. 212 HP isn't a lot for a 3500 pound car, and, as other folks have observed, doesn't have that much torque in lower gears. But 212 horses are better than the basic 165. It goes up hills without the strain of the base model. In addition the engine is quieter both cruising and acceleration than the old box 4. It's just a subtle difference, but one that started to annoy me with the 165 after a few months. The H3 doesn't push you back in your seat, but, frankly, if you're driving the family around in a station wagon, is that really what you're going for?

Interior. This version is much quieter. The larger engine helps, but so does the additional insulation. The leather seats on the upgraded model are firmer than the barebones models. I'm also a big fan of lumbar support, which the 3.0 has. The stereo is much better than the stereo in the basic models. It's got enough power to crank without distorting (Subaru doesn't seem to disclose the power on the unit, but my hunch is that it's more then the basic 80 watt version), the frequency response is good (the bottom end isn't "sub" though), and the 6 CD changer is great to avoid changing CDs frequently. Little thing like interior lights that come on when the door are unlocked (remotely, too), and then dim down after you get in are a very nice touch.

Overall, I give both thumbs up to the upgraded Outback. In the end, I bought one! The slightly higher profile (and ground clearance) puts it into the "crossover" profile -- a little more visibility than a regular car, but not with the tippy feeling, truck-like ride, gas consumption and smog generation of SUVs. (Although I was surprised that the owner’s manual says that the car really isn't intended primarily for offroad use.) The engine and interior are great. There's TONS of room (enough for that second car seat). For someone with 1 or 2 kids, too old for the sports cars of youth, not ready for minivan hell (and the associated high profile, wind noise, and image), but still wanting to get around in comfort, merge onto freeways, and drive up hills without using the Fred Flintstone technique (your feet), and not yet ready for the midlife Porche, test drive the 3 liter Outback. It's not very flashy, and not that cheap. But the 3 liter model is a reasonable value, comparable to the A4, Passat, and Volvo wagons. I chose it over the A4 based on my negative experience with my last Audi. I chose it over the Passat because the VW is smaller, the downscale image of VWs, and other people's VWs I've driven [they idled like a diesel after 20 thousand miles]. I chose it over the Volvo because there is no Volvo dealer in town and I was concerned about Volvo's reliability.

Frankly, I think wagons are a great way to go. Sometime you need to carry home a lot of plants or trees from the nursery, 12 foot lumber from the hardware store, or mountain bikes. When you do, it's as easy as folding down the back seat. I loved to watch people in their large SUVs struggling to tie 8 foot lumber on top their vehicles because it wouldn't fit inside while I just piled in 10 and 12 foot pieces and closed the hatch. We've also found it handy for antiquing. My sister brought home her own dishwasher in one.  And we have been using the Wagon to carry our long tandem kayak (on the top roof rack, which works very well).

Here are some updates as an owner (after 7 year):

Reliability. Over the 7 years, I only saw the shop twice (for the regular maintenance. I get oil changed at a quick change place). The only one initial problem that should have been caught at the factory was a recall for the park pin.

Gas mileage. As you'd expect with the bigger engine I don't get the 30 mpg that I got with the old Legacy. But it does come it around 20 mpg in the city and about 24 on the highway (in Canada that's right at the 10 litres/100 Kms mark).

Minor irritations. First, starting was a little slow at first -- it ground a little too long before it "caught," though it's not a problem with the recommended 90 octane fuel (probably due more to detergents than octane). Second, if you put the CD changer in "Random" format it reverts back to the normal mode when you turn the car off. Third, I miss having preset seat positions (1 for normal driving, 1 for the wife, and 1 for the highway). Fourth, on the seat heater, they not that fast to warm (it takes about 5 minutes of driving) and it also took a while to discover which direction is "high" and which is "low." Fifth, the design of the back seat (including the fold-down arm rest) prevents locating one of the car seats in the middle, as we did in the Legacy. That means that with two kids, there's no room for grandma in the Outback (not always a bad thing). Six, the commands on the windshield washer stick are kind of hard to follow -- largely because of the number of functions (front wipers, front wash, back wiper, back wash). Seven, not quite qualifying as an "irritation" I sometimes miss the separate seat adjustments and dual temperature option. Eight, the "idiot" light went once because I hadn't tightened the fuel cap. Sure it would have gone out eventually, IF I knew what the problem was. Nine, the oil dipstick is short, so when my idiot light went on (above), and there was only a smidge of oil on the end, I dumped in 2 quarts (which was too much. Remember, I had the 1995 Legacy, and this has a much different dipstick because of the 3 liter.)
Pleasant surprises. The slightly higher profile provides a little better visibility for the driver. You're not up as high as a truck, SUV, or a minivan, but you're higher than cars. The interior lights that come on when you open the doors with the remote and dim automatically are a nice feature. The defroster is more efficient than I've ever seen (it defrosts in a less than a second!). And, having been through the snow for two winters, the car including the stock tires does very well in the snow. I've also found the outside mirror and windshield wiper defroster to be helpful (but, since they take a while to warm, you still have to clean the snow off them to start; but they're good for the additional snow that accumulates while driving). In general, this has been a pleasant driving experience over the past 7 years.

Overall, still a solid thumbs up. This has a good selection of features. It has been nothing but reliable. Thanks, Subaru, for doing it right! My wife has inherited this car, so it remains in the family. (I opted to replace it with a Toyota Camry for the hybrid option, but it is nice to have the Subaru for the wagon uses (such as carrying furniture home and bringing the kayak).