1998 Subaru Outback — Known Issues & Recalls

Your car's cooling system failed and blew the head gaskets. This is a serious engine problem that requires the cooling system and head gaskets to be replaced, which is a major repair involving draining coolant, removing the cylinder head, and installing new gaskets and seals.

Your engine overheated severely at 110,000 miles due to a faulty head gasket, causing approximately $3,000 in damage. The head gasket failed along with the radiator, thermostat, water pump, oxygen sensors, and catalytic converters, all requiring replacement. This appears to be a known issue affecting 1998 Subarus of this generation, with many owners reporting similar problems online and mechanics encountering it regularly.

Your engine is overheating every half mile and the coolant reservoir keeps overflowing. You've already spent $1,300 replacing the thermostat, timing belt, belt tensioner, water pump, and flushing the cooling system, but a mechanic has diagnosed a blown head gasket as the root cause. Fixing this will likely cost at least another $2,200 and involves removing the cylinder head to replace the damaged gasket.

Your engine's head gasket has failed. This seal prevents coolant and oil from mixing inside the engine. You may notice coolant leaking, white smoke from the exhaust, overheating, or a milky appearance in your oil. Fixing this requires removing the cylinder head and replacing the gasket.

Your engine is overheating and water is leaking from the cooling system. This is likely caused by a failing head gasket, which seals the engine block and cylinder head. The head gasket will need to be replaced, which involves removing the cylinder head and installing a new gasket.

Your engine overheats only when you're driving, but stays cool when idling. You've already replaced the thermostat, water pump, and timing belt without solving the problem. Based on similar complaints online, this may be a head gasket failure, which is a known issue on this model year. Fixing a head gasket typically requires removing the cylinder head and replacing the gasket seal.

Your engine's head gasket failed at around 70,000 miles, shortly after the warranty expired. This is a known issue affecting many Subaru vehicles from 1997 onward, and the repair cost over $2,500. Fixing a blown head gasket typically requires removing the cylinder head and replacing the gasket itself.

Your engine has experienced multiple seal and gasket failures over time. You noticed a burning oil smell around 48,000 miles from a seal leak, but the dealer didn't catch it during the warranty period. Later, your head gasket failed at 110,000 miles, and you've had to replace cam seals twice (at 158,000 and 165,000 miles), costing about $600 each time. Fixing these issues typically involves replacing the failed gaskets and seals, which requires opening up the engine.

You noticed a strong smell of gasoline fumes while driving home after filling up, and when you checked under the right rear of your car, you found fuel actively leaking from the fuel filler neck. The leak appears to be coming from a corroded section at the bottom of the filler pipe. This is a safety concern that will need professional repair to replace the damaged fuel filler neck.

You've been noticing a fuel smell inside your car since October 2007. The dealer diagnosed the problem as corrosion in the fuel filler neck (the metal part where you add gas), which caused fuel to leak into the passenger compartment. The repair will involve replacing the corroded fuel filler neck, and the dealer quoted $278 for the part and labor.

Your gas fill pipe is leaking gasoline, creating a safety and environmental hazard. A plastic shield near the pipe traps dirt and sand, keeping the outside of the pipe wet for weeks after rain, which causes it to rust through over time. The fix will likely involve replacing the corroded gas fill pipe and possibly the plastic shield.

While driving on the interstate at 62 mph, your hood latch failed suddenly and the hood flew up, shattering your windshield and blocking your front vision completely. The hood hadn't been opened in two weeks and had no visible damage or defect before this happened. This could have caused a serious accident since you lost your ability to see the road ahead. The fix will likely involve replacing the hood latch mechanism.

While driving on the highway at about 60 mph, your hood latch suddenly released on its own, causing the hood to fly open and shatter your windshield. You lost visibility and nearly lost control of the car, but managed to safely pull over to the shoulder. This unexpected failure created a serious safety hazard.

Your car's door locks and alarm system activate whenever a GMC vehicle parked nearby uses its keyless entry remote. This happens because your vehicle's alarm system is picking up signals from other manufacturers' remotes. An independent mechanic recommended taking your car to a Subaru dealer for diagnosis and repair of the alarm system receiver.

Your oil temperature warning light came on, prompting you to take your car to the dealer for diagnosis. The dealer found no actual transmission problem but discovered that replacing the battery can trigger a false warning about the automatic transmission. You paid $130 for this unnecessary diagnostic visit and are concerned that Subaru was aware of this known issue but didn't inform customers. The fix would involve resetting or recalibrating the warning system after battery replacement, or updating the diagnostic software to prevent false alerts.

While driving in city streets, your brakes failed to stop the car. A mechanic found that three brake lines had broken, requiring $500 in repairs. You note that newer Subaru Outback models have a recall for this issue, but your 1998 model experienced the same problem. The repair will likely involve replacing the broken brake lines.

Your brake system completely failed while driving shortly after a clutch replacement, nearly causing a collision. The dealer found severe corrosion on the right rear brake line near the fuel tank, which allowed brake fluid to leak out and prevented the brakes from working. A recall was issued for 2005-2009 models with the same corrosion problem, but your 1998 model wasn't included. The fix involved replacing both the right and left brake lines.

You heard a popping sound from your front corner and noticed your wheel shaking violently at speeds above 20-25 mph, along with a loud grinding noise when backing up. A mechanic friend found that your driver's side front lower control arm had completely rusted through at the bushing connection. The control arm was replaced with a used part from a junkyard, and the issue was resolved.

The fuel filler neck on your 1998 Subaru Outback is prone to rusting out, which is a known issue with this model year. A plastic cover traps dirt, salt, and water against the metal tube, causing it to rust and develop leaks that drip gasoline—potentially onto your hot exhaust system. The fix typically involves replacing the fuel filler neck with a more corrosion-resistant part or applying protective coating to prevent rust.

Your car lost traction and became difficult to control while driving on a snowy road at 30 mph. After ruling out tire and suspension issues, a mechanic discovered the transmission fluid wasn't distributing power evenly to all four wheels, which can be dangerous in winter conditions. The mechanic switched to a specialized transmission fluid (Dextron LLL ATF) to see if it resolves the handling problem. This repair involves draining and replacing the transmission fluid with the correct specification.