My 98 Outback wagon (92000) has blown headgaskets. We are faced with a pricey repair, but are concered about the engine and whether or not it is warped. If it is, a new/used 2.5L is going to also be costly and we run the risk of having the heads blow again because of the 2.5L notorious reputation for this. We were told by a mechanic that we could put the 2.2L in the car and the only drawback would be a little loss of power going up hills. I have never heard of doing this before, but the 2.2L IS less expensive, so therefore, tempting. Does anyone have any suggestions or advice?

 

It will definitely fit because Legacy's from the same era had that motor in them, and the mechanic is correct in that they are less prone to the head gasket failure of that made the phase 1 2.5L motors so famous.

If you have to replace the motor and are planning on keeping the car around for a while, it might be a good idea from a longevity and maintenence perspective. You will definitely have less power (probably 30hp and 30lb/ft of torque), but if reliability is more important I'd say go with the 2.2L.