I just got my 98 Legacy GT on the road after replacing the head gaskets with 92k on it. I picked it up for only $800. I am not new to legacy's, I have a 95 and 96 as well. My question is is the 98 a limited slip rearend? I noticed today in the snow when i stepped on it to do some fishtailing in the snow the rear would stay free for a few seconds then i would get a thud from the rear of the car then it would start fishtailing fine. My 95 is always right there, no delay or thud. It almost feels like a limited slip rearend. Was this even an option for Subaru? Or should i start looking for a transmission? I did do a trans filter and fluid swap before i put it on the road. I am not a novice either, i know it did it right.

Any suggestions would be greatly appreciated.
Thanks!

 

The non-Outback Legacy models didn't get rear LSDs till 2000, so your 98 shouldn't have one. The rear LSD, if it had one, would engage smoothly anyhow because it's a viscous type, not clutchpack.

It sounds like you might have a solenoid failing in what is the equivalent of the transfer case. It's trying to manage the transfer of power to the rear, but getting stuck closed, then opening. Are you getting any CELs or flashing lights?

 

Not getting any codes or flashing lights. Someone else said to me to check the transfer case fluid as well. I don't recal doing that on that one. will have to look into it this weekend.