Subaru Legacy 2.5GT Limited

Wants, needs, and requirements - narrowing down the selection
This was an interesting adventure. Living in Colorado and having to commute to work every day rain or show or shine or both, I needed an AWD. True, having a FWD car with manual transmission is a good second option, but unless you get studded tires you can’t be sure that you won’t get stuck on some back road or even your own street. The side-streets in Denver & Boulder are notorious for not getting plowed. Having just sold a real SUV I didn’t want the unnecessary size, bulkiness, gas expense, and roll-over risks. That left AWD sedans. In attempt to narrow down the best one to buy I created an extensive matrix that encompassed professional reviews, articles, Consumer Reports magazine, and assembled a fleet of capable cars to test. The test requirements included: acceleration, handling, luxury features, reliability, and value.
The competitors or a broad range of choices under 30-large:
2006 BMW 325xi & 330xi, 2007 Audi A4 2.0T Quattro, 2007 Volvo S60 T5 AWD, 2006 Infinity G35x, 2006 Lexus IS250 AWD. I listed the year on purpose. You can get either a brand new or a slightly used 2008 LGT or any of the European cars with more years and mileage under their belts.
The first ones to fail the test were the slush-box equipped ones. Yes, I know, the automatic transmissions are no longer “slush-boxes” per se, but even the paddle shifters didn’t make them any fun to drive. If only Infiniti outfitted its powerful G35x, especially in its 2007 redesign with a manual! But no-o, the “rev-matching” automatic is the only choice. Same goes for already underpowered Lexus IS250 AWD. Without a manual tranny, it’s annoyingly lethargic. Volvo S60 T5 AWD seemed a good choice on paper, yet still it was not even remotely sporty and once I looked at depreciation tables, I steered away from that good-looking Swede.
That left the Germans. First I read the reports on Audi. Oh my. The things these poor people had to endure, ranging from hesitations on take-off (dangerous) to very scary reliability issues, like being stranded with dead engine, windows stuck midway, transmissions failing, electrical systems replaced 4 times on the same vehicle… And they depreciate faster than even domestic models. Er… no thanks. It's a mystery to me as to why Consumer Reports posted an "average" reliability for this car. Not a single person I spoke with reported a trouble-free experience. To its credit, Audi does sport a fine looking interior and a good stereo, and I was pleasantly impressed with its shifter.
The BMW’s are whole another story. I’ve “lusted” for the venerable 3-series for a long time, and when I finally started test-driving them I was initially very impressed. Engine power (in 330xi form), manual transmission, and handling were outstanding. The BMW designers packed the 2006 325xi and 330xi with every electronic gizmo under the sun... and I have a feeling that this technology won't stand the test of time too well. It's a very appealing automobile, nonetheless. But (!) the price that dealers shamelessly charge for 2 year old cars (upwards of 30K) when it should be 26-27K, along with bumpy ride (due to much lamented run-flat-tires and stiff suspension) confusing controls, and uncharted territories of repair costs once the warranty expires (the BMW's are just as well known for their remarkable performance as for their remarkable repair costs) scared me away. Here’s the only way to buy a BMW, everybody: get a slightly used one-year-old one, and from a private seller. As of this writing, the price of 2007 328xi is around 32-34K, so with enough time left on warranty and maintenance you’ll be relatively safe for the next couple of years. Then sell it right away (not trade-in!)

That left me with the only choice: Subaru Legacy GT Limited.

Going down the list of requirements:
AWD? Check. Here in Colorado, Subaru cars are highly regarded for their go-anywhere in bad weather characteristics.
Fast? You betcha. The car can go 0-60 in 5.4 seconds, which is… yes, supercar fast.
Sleeper? Oh yes. This was the largest draw for me because I don’t want to use my ride as an extension of my own standard equipment. The hood scoop (albeit a modest one) does give it away though, but otherwise it’s very stealth, but attractive in conservative not-in-your-face way. Flaunting around a fancy badge when people are losing their life’s savings is inconsiderate at best and arrogant at worst, IMHO.
Handling? Check. This car handles almost exactly like the beemers I tested. Slightly more body-roll when hard-cornering, but not noticeable in everyday driving.
Luxury amenities? Check aplenty. Perforated power leather seats, 6CD change that can play MP3’s and WMA’s, iPod jack, moonroof, and various other gizmos abound. I am a little apprehensive about the frameless windows, but the doors close with a “thump” familiar to me from testing the BMW’s and Audi’s.
Fuel economy? Check, but with a caution. This car begs to be driven fast, and when you oblige, it quickly drinks up premium gas. In everyday traffic use the Si-Drive system to flatten the torque curve by selecting “Intelligent” mode and the car will feel a little sluggish but the MPG will improve to 27 mpg (there’s a digital gauge that’s really interesting to watch). The coolest setting, by the way, is Sport#. It can be selected by clicking a button next to the steering wheel at any time, and boy, does this turn the car into a hot-rod! The power delivery becomes immediate, and the car accelerates and downshifts quite WRX-like.

The Spec.B. Many articles came out praising the GT Spec.B edition. It takes the GT Limited and adds stiffer suspension, bigger brakes, and 6-sp manual. It also ads weird-looking seat inserts made out of something that feels like suede. Call me crazy, but I just don’t see the value of such a performance –tuned machine. For one, you’ll have to live with it day in and day out, meaning that stiff suspension will punish you for the joy during cornering maneuvers. Aside from 2004-2007 Acura TSX, not a single manufacturer can come up with a good 6-sp stick. They feel imprecise and/or clunky. The Spec.B also comes with a standard Vehicle Stability Control not available with manual-transmission LGT. Well, this gizmo might be hailed as the best thing since ABS, but its main purpose seems to be to suck all the fun out of driving. Most owners elect to turn it off. Overall, it's a very capable sport sedan, but why pay extra 2-3K over the LGT?

Driving it. You’ll immediately notice tight turning radius, ultra-responsive handling, and a somewhat tight shifter. All these characteristics combined cause me to brand it a “Japanese BMW”. The chassis are nearly as good, but I would venture to say that BMW’s chassis tends to absorb bad roads with even more grace.
The year 2008 refresh included placing audio controls on the steering wheel. For audiophiles, this is enough of a reason to get it. The controls are also illuminated, allowing for easy operation at night-time.
The tilt-telescoping steering wheel is another feature I really like. Being 6’ tall, I like to sit relatively far, in a reclining sort of way. Naturally, all the cars without this feature make it very difficult for me to find a good driving position.
The shifter is a little tight. It does provide an outstanding feel and control, it does not operate effortlessly and takes some time getting used to. Subaru offers a short-throw shifter for just $280, but I haven’t yet familiarized myself with this option.
The engine’s low purr can quickly change to aggressive “whoosh” when the turbo engages. Makes it hard to keep one’s foot off the gas pedal. Interestingly, the pedals my car came with are the momo drilled ones. They’re also ideally spaced, allowing for quick heel&toe downshifts.

In conclusion, for those who like the idea of Japanese upscale AWD sedan with quick reflexes and stealth appeal – look no further.