The Basics
I drove a leased 1998 Subaru Outback wagon from August of 1997 through the summer of 2000. Mine had the cold weather package, a cd player, and remote keyless entry (these were all optional on this car). My Outback served me well while I was going to school in New Hampshire.
Driving the Outback
The Outback's all-wheel drive system is great when driving in the snow (as is the ABS system). I drove this car hundreds of miles on inter-states while it was snowing heavily, and I have driven it on un-plowed logging roads with no problems. I would recommend snow tires if you're planning on traveling on any un-plowed dirt roads (I certainly wished I had them at the time).
The Outback also handles nicely on dry roads. The steering is responsive and the engine is adequate. Mind you that I did not say that the engine feels powerful. It is pretty solid for a 4-cylinder, but the Outback isn't the lightest of cars. I am now driving a car with a more powerful engine because I wasn't satisfied with this engine (note to Subaru: I would love to drive a Legacy GT sedan with at least 200hp, so please build one).
Reliability
I never experienced any problems with my Outback (ok, I might have crashed it, but that wasn't a reliability problem). This car was stored in outdoor lots in New Hampshire all winter and it never failed to start (though it did take a couple of tries when the temperature got below -20 F). My Outback was making some interesting noises by the time I turned it in with 35,000 miles on the clock, but it never gave me any problems (by interesting noises I mean it was running kind of loud and rough, and if I had owned the car I would have tried to get it fixed).
The Interior
The front seats of this car are roomy enough to accommodate large adults (my 6'4" roommate drives a '98 Outback Limited and says it's about the smallest car that he is comfortable in). The back seats aren't the most spacious, but they're fine for two adults. I really like the layout of the dash. The overhead bin that holds a pair of glasses it a nice touch. Minor touches that were missing from the interior are a lighted vanity mirror on the driver side sun visor and magazine pockets on the backs of the front seats.
Another major selling point of this car is space behind the back seats. The Outback is great for moving lots of stuff. I crammed most of my belongings into the back of that car (with the rear seats folded down) on several occasions. My mom borrowed it on more than one occasion when she need to move things that wouldn't fit in her car. The back of this Outback really does have as much space as a lot of sport utilities.
In Closing
The '98 Outback is a great car if you need to drive in snow and on unpaved roads but don't want to drive a SUV. It's also more comfortable than most SUVs on the highway (though it's not as quiet as a good sedan). I would certainly recommend this car to a friend, though I would caution that it is probably not as well-built as some cars out there (I'm a big fan of Toyotas and Hondas), it's better than most, especially if you won't consider anything with two-wheel drive.
Amount Paid (US$): 320/month
Condition: New
Model Year: 1998
Model and Options: Outback Wagon w/cold weather package