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i know, i know...2 totally different cars, but i'm torn nonetheless. i've got to get out of this SUV, but since that means giving up the 4x4 i want an AWD car and these are the 2 i've narrowed down to. i'll be buying/leasing new if that makes any difference. i've heard the 05 ford 500 was pretty bad.

my main deciding factors here are winter driving and gas mileage. anyone out there own either of these who can vouch for MPG & handling in NE OH winters? or if you have any other info to help me w/ this decision it is appreciated...thanks, amy
 

I don't own either. But hoefully, I can help.  Yes, the 500 and the Legacy are techincally in two different categories.  Ford and Subaru's marketing teams would tell you that the 500 is too big to compete with the smaller, more agile Legacy.  But beyond size, they're actaully pretty similar.  Consider these categories:

Size:  The 500, again, is bigger.  It's got a big back seat and a huge trunk. It's long, tall, and heavy, so if that is important, then it seems that you shouldn't be cross-shopping with the Legacy.  Then again, the Legacy isn't small, and offers reasonably back-seat space and a reasonable trunk.  

Power/performance:  I might be wrong, but I assume that you're in the market for a $25,000 car, not a $30,000 car.  In the $22K-26K range, if you went to the dealer's now, you'd get a 200HP V6 Ford or a 170HP 4 Cylinder Legacy.  Don't let the numbers fool you, however, because the Ford is heavier, and the V6 is rather Gutless, despite it's HP rating.  The Legacy, on the other hand, isn't exactly fast, but delivers meaningful torque at low RPM, making it feel about as quick as the Ford.  One important note:  If you wait a month or two, the "new" Ford 500, now renamed the Taurus, will become available.  It's basically the same car as the 500, with minor imporovements, and a HUGE engine improvement to a 3.5 Liter V6 that's very powerful. With this car, the performance difference between the Subaru and the Taurus will be huge unless you opt for the $30,000 Legacy GT or 3.0Limited, which offer 243 and 250HP turbo and 6Cyl engines.  

Handling:  The Legacy is, by far, the superior handling car.  It's taught, balanced, and nimble.  The Ford, which is actaully based on the Volvo S80/S60/V70/Crossroad chassis, is capable but generally soft and unexciting.  it has a better ride, though the LEgacy is also far from punishing.  

Equipment/Quality:  Subarus have a reputation for longevity and reliability.  Fords do not.  It'd be nice to finally be able to say that an American car maker has reached the quality/reliability standards set by the Japanese, but the 500 isn't the one to do it.  It's not a UNreliable car, but it's rated lower than the Subaru.  That said, the Ford is well priced and comes with lots of standard equipment in the AWD models.  A similarly priced Subaru istn't a stripped, but you may want to be sure that you're getting the options you want.  

AWD:  Unless you demand spirited snow performance, or live in the snow-belt,  both AWD systems are perfectly fine.  But if you desire the best, the Subaru has a more proficient, full-time AWD system that proportions nearly-equal power to front and rear wheels all the time--and then adjusts the power to each individual wheel based on how much traction it has.  The Ford's system, on the other hand, is based ont he Volvo system, which is primarily Front-wheel-drive, and only delivers power to the rear wheels when necessary.  

If I were in your position, I'd choose the Legacy without even thinking about it because I value handling/engineering/design over sheer power. I find the Legacy to be an enormously competent and capable car that delivers style and fun.  I find the 500/Taurus to be overwieght, bloated-looking, and generally boring.  It's big and comfy, but then, the Legacy is big enough and comfy enough, and offers far more as far as driving satisfaction.  

If I haven't touched upon the issues that you find important, let me know.  Also note that there are a number of other cars that might fit your needs.  

I have owned 2 Outbacks.  One was a 2003 4 cylinder; the other a 2005 XT Turbo.  I live in Rochester, NY...known for snow and ice. Traded the XT for a 2006 Ford 500 SEL, front wheel drive with traction control.
   First, I find the Subies are good, not great cars.  Solid but uncomfortable interiors with its share of squeaks and rattles. Lousy in- town gas mileage...the turbo (requiring 93 octane besides) managed 12-15 tops in winter; highway never more than 21-22 in any season. My first Outback was only marginally better.  Dealer says it was 'normal'. Fun car that turbo, real zoom, but the torque cancelled the effectiveness of the 4 wheel drive and I found the car (both) to be disappointing at critical moments in winter snows and ice.  My Ford 500, yes no zoom appeal until you get into highway passing mode, is a gem!  Looks chunky, but that means room!. Sits high, big outside mirrors like my subies and incredibly stable and predictable in this winter's mess around here in Rochester.  Gas mileage for this big, chunker:  18-19 city and an incredible and consistant 30-32 highway at 65 mph with cruise on and loving 87 octane! Solid, quiet, comfortable but with the right color (mine's dark red) it's 'boring' style turns rather cute.  Like the subies its crash test ratings (Volvo engineering) are tops...would I trade back? Never! Bottom line, I think the subies are over-rated and the 500's under-rated. Rent one for a week or week-end and see for yourself.