If you can address the diff issue, you would probably easily get back the cost of repairing or replacing it. It‘s otherwise a parts car, worth maybe a few hundred.

I would start by trying to see the condition of what you have. And WD-40 isn’t going to break loose those plugs, get some penetrating oil and soak them for a few days consecutive before trying to loosen them again.

If at the end of the day it’s determined that replacement is the only option, go online and search nation wide. A diff can be shipped pretty easily. And most places will tell you the miles on them; since many cars end their life because of front end damage, there has to be some good ones out there.

Good luck!

 

Thanks for the feedback! I am not one to shy away from mechanical work so I may replace the diff with my son.

 

FYI, the rear diff on all the '96-'99 Subarus with the EJ25D/2.5 and the 4EAT/AT Trans used a 4.44 FD ratio - so, Legacy GT, LSi, OB, SUS, Forester and Impreza RS. Double-check the type of axle stubs used as some may have changed over the years from 'innies' to 'outies', for example, but I think that was after '00.

Fighting the rust may be the bigger issue getting the diff out>in. If the plugs are stuck, likely the diff housing and strut bolts, etc will not be your friends either.

 

Update: I took it to a trustworthy local shop and he says it's the clutch at the back of the transmission going to the rear end. He's guessing at least $1500 to fix. Front right wheel bearing also needs to be replaced. So, I'm looking to part with it. With all of the issues described above and here, anyone have any kind of ballpark suggestions on what it would be worth? I'm so out of touch with this stuff, it would be good to get input from those of you with your finger more on the pulse of this.

 

Update: I took it to a trustworthy local shop and he says it's the clutch at the back of the transmission going to the rear end. He's guessing at least $1500 to fix.

You'd be lucky to get even $200 for it. I tried inputting your description into Edmunds, and they wouldn't even give it a value!

If I were you, I'd just put in the fuse to make it front wheel drive only, and keep it as an emergency spare. I've run my '96 that way for 60,000 miles now, with zero issues.

 

scrap maybe $300, but you have a running example of a EJ25D, and subaru loving shops and people may offer you more than that.

 

I'm certainly no expert (and probably never will be! ) on many of the Subie systems, so I would caution that while the problem seems to have disappeared after inserting the fuse, it may still be possible that continued rotation of the suspect parts could cause further damage. I'd do a trans fluid drain & fill, and make sure that the drain plug is magnetic. After a couple thousand miles, pult the plug once more to see if it has more metal on it - that MIGHT be a sign that the damage is increasing. Someone else who knows the system more thoroughly can chime in.

 

I'm relatively mechanically inclined. I would tend to believe that the fuse is shorting some electrical system that allows the clutch to engage thus leaving the clutch disengaged. More research on how that works would be good but that's my guess as to what is going on. Let me know if you do find anything else but this really does seem like a reasonable fix to make a car I would worry about driving drivable. It's either that or sell it for a few hundred dollars and this seems like a lot better solution.

Thanks again for pointing that out!