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97 legacy outback rod knock


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It seems my 289k engine is giving up... it seems to have a rod knock, is down on power, oil pressure light flickers, and was getting hot.

 

Also, is spewing oil on the drivers side. Entire drivers side is soaked in oil. I hope to begin teardown this weekend. Anyone have any input? used engines are so friggin expensive.

 

edit. 2.5 dual overhead cam, did head gaskets 110k ago, timing 50k.

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I personally would get a set of rebuilt heads, order the subaru OEM Master gasket kit and then tear it down and replace rings, bearings and oil pump. Should be about $1300 ish if you do all the work yourself and that way you get a fully rebuilt motor for as cheap as possible. I did this on my car last winter, only took about 10 days and $1200 for my 2.2L but I replaced lots of extra stuff that you probably wouldn't need to.
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It seems that is what I may do, but I have some hesitations

 

mileage

transmission works solid, but I get the binding, even on brand new tires w/ alignment

I really want a five speed.....

 

plus, I drive a TON of miles. 50k a year.

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